TheNigeria Customs Service has commenced the implementation of import duty and Value Added Tax VAT, exemption on critical raw materials and healthcare equipment essential for the production of pharmaceutical products in the country for a period of two years.

This is in line with an earlier directive by President Bola Tinubu, which aims to enhance local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments in the sector.

According to a statement by the National Public Relations Officer of the Service, Assistant Comptroller Abdullahi Maiwada, Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines for the implementation of the directive with a view to achieving the set objectives.

“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 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.

“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 statement read in part.

While urging relevant stakeholders to effectively key into the initiative, he however assured that the Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development, adding that successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.

According to him, through the collective efforts of all stakeholders, the shared goal of a robust healthcare sector that meets the needs of all citizens would be achieved.