The Nigeria Customs Service (NCS) on Wednesday announced the exemption of critical raw materials used in the production of pharmaceutical products from import duty and Value Added Tax (VAT).
According to the Service, this exemption regime will last for the next two years.
A statement issued by the National Spokesperson for the NCS, Abdullahi Aliyu Maiwada, noted that the exemption covers Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
According to the statement, “Drawing from presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, and stimulating local investments, the Nigeria Customs Service (NCS) is pleased to announce that His Excellency, President Bola Ahmed Tinubu GCFR, through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved comprehensive guidelines to actualize these objectives.
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“Consequently, critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax (VAT) for a period of two years.
This exemption covers Active Pharmaceutical Ingredients (APIs), excipients, and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
“To ensure that these fiscal incentives are fully utilized, eligibility is limited 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.
“In commitment to transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy, including data on importers, quantities, and values of the imported items, ensuring the policy’s implementation aligns with its intended 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.
The 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.”
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