In a significant move to strengthen Nigeria’s healthcare sector, the Nigeria Customs Service (NCS) has begun implementing a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials.¹ This policy shift follows President Bola Tinubu’s approval of guidelines aimed at supporting local pharmaceutical manufacturing and reducing healthcare costs.
Exempted Items
The tax exemption applies to:
– Active Pharmaceutical Ingredients (APIs)
– Excipients
– Essential raw materials used in producing medicines
– Long-Lasting Insecticidal Nets (LLINs)
– Rapid Diagnostic Kits
– Reagents
– Packaging materials
According to Abdullahi Maiwada, NCS National Public Relations Officer, the move is in line with presidential directives to enhance local healthcare manufacturing, reduce production costs, and attract investments.
Implementation and Monitoring
To ensure transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy. These reports will include data on importers, quantities, and values of imported items.
The successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.
