The Nigeria Customs Service (NCS), in a statement on Wednesday, said the Federal Government has exempted critical raw materials used in pharmaceutical production from import duty and Value Added Tax (VAT) for two years in a bid to strengthen local manufacturing, reduce healthcare costs, and attract investment into the sector.
The National Public Relations Officer of the NCS, Assistant Comptroller Abdullahi Maiwada, said the exemption, approved by President Bola Ahmed Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, is expected to enhance the availability of essential medicines and medical supplies in Nigeria.
He said under this policy, key materials such as Active Pharmaceutical Ingredients (APIs), excipients, and other vital components needed for manufacturing essential drugs, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials will benefit from the exemption.
By eliminating these financial barriers, the government aims to make quality healthcare products more accessible while encouraging the growth of the local pharmaceutical industry.
Maiwada said to ensure the policy is effectively implemented, the exemption is restricted to manufacturers of pharmaceutical products recognized by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number (TIN).
“This measure ensures that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure,” he said.
The NCS spokesman said the Service is tasked with overseeing the policy’s implementation, and will provide quarterly reports detailing all importations under the scheme.
He said the reports will document the importers, quantities, and values of imported items, ensuring transparency and alignment with the policy’s objectives.
“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development. Successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. Through our collective efforts, we can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians,” he added.
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