Nigeria Implements Two-Year Exemption on Import Duty and VAT for Pharmaceutical Raw Materials

The Nigeria Customs Service (NCS) has launched a significant policy aimed at boosting local pharmaceutical production, as it introduces a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials. This initiative, disclosed in a statement by NCS National Public Relations Officer Abdullahi Maiwada, is part of the government’s broader strategy to support local manufacturing and reduce healthcare costs in Nigeria.

The exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials used in the production of medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials. The policy follows the approval of guidelines by President Bola Tinubu, aiming to support local healthcare manufacturing, lower production costs, and attract foreign investments into the sector.

The exemption is designed to stimulate the local pharmaceutical industry, making medicines and other health-related products more affordable and accessible to Nigerians. By reducing the financial burden on manufacturers, the policy seeks to lower healthcare costs while fostering the growth of the domestic pharmaceutical industry.

The NCS emphasized that the move aligns with President Tinubu’s directives to enhance local production capabilities, improve national healthcare systems, and ensure sustainable growth in the pharmaceutical sector. This policy, facilitated by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, is seen as a critical step in improving Nigeria’s healthcare infrastructure.

In a bid to ensure transparency and accountability, the NCS announced that it would compile quarterly reports detailing all imports under the exemption policy. These reports will include data on importers, quantities, and values of the imported items. This measure is intended to ensure the policy’s proper implementation and to align with its intended objectives.

Furthermore, the NCS stressed the importance of collaboration among all stakeholders, including importers, manufacturers, and relevant government agencies, to ensure the successful execution of the policy. The service reiterated its commitment to supporting government policies while continuing to fulfill its mandate of facilitating trade, enhancing border security, and contributing to national development.