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.
The Nigeria Customs Service (NCS) through its national spokesman, Abdullahi Maiwada, disclosing this in a statement on Wednesday, said the development follows directives from President Bola Tinubu aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments.
TheFact Daily notes that the development brings a sigh of relief, not only to pharmaceutical companies, but also to the general public who may now enjoy more affordable medicines and other healthcare products.
The 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.
The NCS added that to ensure that these fiscal incentives are fully utilised, eligibility is limited to manufacturers of pharmaceutical products recognised 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”, the NCS stated.
To demonstrate its commitment to transparency and effective monitoring, the NCS said it 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 NCS reiterated its commitment to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development, adding that 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”, Maiwada said, adding that President Bola Tinubu, through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualise these objectives.
