Nigeria Customs Implements Two-Year Import Duty, VAT Waiver on Pharmaceutical Raw Materials

Naija247news reports that the Nigeria Customs Service (NCS) has commenced the implementation of a two-year import duty and Value Added Tax (VAT) waiver on pharmaceutical raw materials. This initiative, aimed at boosting local drug production and reducing the cost of essential medicines, aligns with the federal government’s efforts to strengthen the country’s healthcare sector.

Naija247news gathered that the waiver covers a wide range of pharmaceutical ingredients used in the production of medicines, including antibiotics, analgesics, and other essential drugs. By eliminating import duties and VAT on these materials, the government hopes to encourage local manufacturing, reduce dependence on imported finished drugs, and make healthcare more affordable for Nigerians.

According to Naija247news, the policy is expected to benefit pharmaceutical manufacturers by lowering production costs and improving access to essential raw materials. Industry experts believe that this move could significantly enhance the competitiveness of Nigeria’s pharmaceutical sector and reduce the price of locally produced medicines.

Naija247news understands that the implementation of the waiver follows a directive from the federal government aimed at supporting the healthcare industry, particularly in the wake of economic challenges and rising inflation. The policy is also seen as part of broader efforts to ensure the availability of affordable medicines and reduce the country’s reliance on foreign pharmaceutical products.

A senior customs official, speaking on the development, noted that the service has begun issuing necessary guidelines to importers and pharmaceutical companies on how to access the waiver. He stated, “This policy is designed to strengthen Nigeria’s pharmaceutical sector and improve drug availability. We are committed to ensuring its smooth implementation.”

Naija247news reports that stakeholders in the healthcare and pharmaceutical industries have welcomed the initiative, describing it as a major step toward achieving self-sufficiency in drug production. However, some manufacturers have expressed concerns over potential bottlenecks in the waiver’s implementation, calling for clear and transparent processes to ensure its success.

Economic analysts argue that while the waiver is a positive step, the government must complement it with other policies such as improved infrastructure, research funding, and regulatory support to maximize its impact. Without these measures, they warn, the benefits of the waiver could be limited.