The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) on critical raw materials essential for the production of pharmaceutical products.

The exemption, which comes under a presidential executive order, was disclosed in a statement on Wednesday by the NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada.

Scope of the Exemption

The exemption applies to key materials needed for the production of healthcare-related products, including:

• Active Pharmaceutical Ingredients (APIs)
• Excipients (inactive substances used in drug formulations)
• Materials for Long-Lasting Insecticidal Nets (LLINs)
• Rapid Diagnostic Kits and reagents
• Pharmaceutical packaging materials

The initiative is part of the Federal Government’s efforts to boost local pharmaceutical production, reduce healthcare costs, and stimulate investments in the healthcare sector.

“This exemption covers active pharmaceutical ingredients, excipients, and other vital raw materials required for manufacturing essential medicines,” the statement read.

Eligibility Criteria

According to Maiwada, only manufacturers recognized by the Federal Ministry of Health and Social Welfare and possessing a valid Tax Identification Number (TIN) will be eligible to benefit from these tax reliefs. This ensures the incentives are directed toward legitimate pharmaceutical manufacturers.

Transparency and Monitoring

To ensure accountability, the NCS will compile quarterly reports detailing all importations under the policy. These reports will include:

• Data on importers
• Quantities of imported materials
• Values of the imported items

The statement emphasized that this transparency measure is intended to ensure the policy achieves its goals of strengthening Nigeria’s healthcare infrastructure.

Commitment to Government Policies

The NCS reiterated its commitment to supporting government policies while fulfilling its mandate to:

• Facilitate trade
• Enhance border security
• Drive national development

“Successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies,” Maiwada added.

The Customs Service called for cooperation from all stakeholders to ensure the policy enhances Nigeria’s healthcare capacity and meets the medical needs of the population.