The Nigeria Customs Service NCS, has announced a two-year exemption on import duties and Value Added Tax for critical raw materials used in pharmaceutical manufacturing. The announcement was made by the Assistant Comptroller of Customs and National Public Relations Officer, Abdullahi Maiwada, on behalf of the Comptroller-General of Customs.
Approved by President Bola Ahmed Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, the policy aims to strengthen local drug production, reduce healthcare costs, and attract investment in Nigeria’s medical sector.
Essential components such as Active Pharmaceutical Ingredients, excipients, and packaging materials will be tax-free. The exemption also applies to raw materials for manufacturing Long-Lasting Insecticidal Nets, Rapid Diagnostic Kits, and laboratory reagents.
Only pharmaceutical manufacturers recognized by the Federal Ministry of Health and Social Welfare will benefit from the tax relief, provided they hold a valid Tax Identification Number. This restriction is intended to ensure that the incentives are directed at legitimate businesses committed to boosting Nigeria’s healthcare industry.
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To maintain transparency, the NCS will publish quarterly reports detailing all imports under this policy, including importer information, quantities, and values of the imported materials. This measure is expected to help evaluate the policy’s impact and prevent misuse of the exemption.
The customs service stressed the importance of cooperation between stakeholders, including importers, manufacturers, and government agencies, to ensure smooth implementation. It reaffirmed its commitment to facilitating trade, securing Nigeria’s borders, and supporting economic growth while helping to strengthen the healthcare sector.
Stakeholders in the pharmaceutical industry have welcomed the decision, describing it as a major step toward reducing Nigeria’s dependence on imported medical products. By lowering production costs, the policy is expected to make essential medicines more affordable and encourage greater investment in local pharmaceutical production.
The initiative aligns with the federal government’s broader strategy to develop Nigeria’s healthcare infrastructure and reduce reliance on medical imports. As the policy takes effect, manufacturers are encouraged to maximize the opportunity to expand production capacity and improve access to quality healthcare products.
Crediblenewsng.com
