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.
The new policy was revealed in a statement released on Wednesday by Abdullahi Maiwada, the National Public Relations Officer of the Nigeria Customs Service (NCS).
Maiwada, an Assistant Comptroller of Customs, explained that the policy was introduced following President Bola Tinubu’s approval of guidelines aimed at supporting local pharmaceutical manufacturing and lowering healthcare costs.
The statement clarified that the tax exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other key raw materials used in the production of medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
It further stated that this initiative aligns with the president’s directives to boost local healthcare manufacturing, reduce production costs, and attract investments. The guidelines were approved by President Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to the statement, the exemption will extend to APIs, excipients, and other essential materials used in medicine production, including LLINs, rapid diagnostic kits, reagents, and packaging materials.
“To maintain transparency and ensure effective monitoring, the NCS will prepare quarterly reports that will include details on all imports under this policy, such as importer information, quantities, and values, to ensure the policy is implemented as intended,” the statement noted.
The NCS reiterated its commitment to supporting government policies while fulfilling its core responsibilities to facilitate trade, enhance border security, and drive national development.
The NCS emphasized that the successful execution of the policy will require collaboration from all relevant stakeholders, including importers, manufacturers, and government agencies.
