In a major policy shift aimed at reducing the cost of essential medicines, the Nigeria Customs Service (NCS) has announced that raw materials for pharmaceutical production will now be exempt from import duties and Value Added Tax (VAT).
This exemption, which will last for two years, aligns with President Bola Ahmed Tinubu’s Executive Order designed to make healthcare products more affordable and accessible across the country.
What This Means for the Health Sector
According to a statement from Customs Spokesman Abdullahi Maiwada, the waiver applies to critical pharmaceutical raw materials, including:
- Active Pharmaceutical Ingredients (APIs)
- Excipients and essential chemicals
- Long-Lasting Insecticidal Nets (LLINs)
- Rapid Diagnostic Kits
- Medical reagents and packaging materials
However, only pharmaceutical manufacturers officially recognized by the Federal Ministry of Health and Social Welfare—and possessing a valid Tax Identification Number (TIN)—will benefit from this initiative.
Ensuring Transparency in Implementation
To prevent abuse of the policy, the Nigeria Customs Service has committed to publishing quarterly reports, detailing import volumes, values, and importer identities.
This measure aims to ensure the tax breaks directly benefit legitimate businesses dedicated to strengthening Nigeria’s healthcare system.
With the cost of essential medicines expected to drop, this move is seen as a significant step toward improving public health and encouraging local pharmaceutical production.
Stay tuned to NIGPOST for more updates on government policies and their impact on everyday Nigerians!
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