The Nigerian government, through the Nigeria Customs Service (NCS), has begun implementing a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials.
The agency, in a statement on Wednesday, announced that the policy follows President Bola Tinubu’s approval of guidelines to support local pharmaceutical manufacturing and reduce healthcare costs.
According to the statement, the tax exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials used in producing medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
It said only manufacturers recognized by the Federal Ministry of Health and Social Welfare and possessing a valid Tax Identification Number (TIN) are eligible for the exemption.
To ensure transparency, the agency said it will compile quarterly reports detailing importers, quantities, and values of imported items under this policy.
The statement reads:
PRESS RELEASE
NIGERIA CUSTOMS SERVICE IMPLEMENTS PRESIDENTIAL EXECUTIVE ORDER TO BOOST LOCAL PRODUCTION OF HEALTHCARE PRODUCTS
1.Drawing from Presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as 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 the comprehensive guidelines to actualise these objectives.
2.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.
3.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.
4.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.
5.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.
ABDULLAHI MAIWADA
Assistant Comptroller of Customs
National Public Relations Officer
For Comptroller-General of Customs
26 March 2025