The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) for critical raw materials used in pharmaceutical production, as part of a presidential initiative to boost local healthcare manufacturing.

Key Details of the Exemption

The tariff relief, authorized by President Bola Tinubu and implemented through the Minister of Finance, Olawale Edun, covers:

- Active Pharmaceutical Ingredients

- Excipients

- Packaging materials

- Long-Lasting Insecticidal Nets

- Rapid Diagnostic Kits

- Reagents

Eligibility Criteria

The exemption is specifically targeted at:

- Manufacturers recognized by the Federal Ministry of Health and Social Welfare

- Companies with a valid Tax Identification Number

Monitoring and Transparency

The Nigeria Customs Service has committed to:

- Compiling quarterly reports on importations

- Tracking details of importers, quantities, and values of imported items

- Ensuring the policy meets its intended objectives of strengthening local healthcare infrastructure

Purpose of the Initiative

The government aims to:

- Reduce the cost of medical equipment and consumables

- Stimulate local investments

- Enhance local manufacturing of healthcare products

NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada, emphasized that the policy requires collaboration from importers, manufacturers, and government agencies to successfully develop Nigeria's healthcare sector.

The exemption will be in effect for two years, providing a significant opportunity for local pharmaceutical manufacturers to expand and improve healthcare product production.