By In a major policy shift, the Nigeria Customs Service (NCS) has implemented a presidential directive exempting essential pharmaceutical raw materials from import duties and Value Added Tax (VAT) for two years. The move aims to strengthen Nigeria’s healthcare sector and boost local drug production.
The exemption, approved by President Bola Ahmed Tinubu and announced by Finance Minister Olawale Edun, is expected to lower production costs, attract investments, and improve access to affordable medicines. It covers key materials such as Active Pharmaceutical Ingredients (APIs), excipients, reagents, Long-Lasting Insecticidal Nets (LLINs), rapid diagnostic kits, and packaging materials.
To qualify for these benefits, manufacturers must be recognized by the Federal Ministry of Health and possess a valid Tax Identification Number (TIN). This requirement ensures that only legitimate pharmaceutical companies benefit, directly supporting the expansion of Nigeria’s local drug manufacturing capacity.
The NCS has pledged transparency in implementing the policy, committing to publishing quarterly reports on importations under the exemption. These reports will include details on importers, quantities, and values to ensure accountability and prevent abuse of the system.
The policy aligns with President Tinubu’s broader economic agenda of reducing dependence on foreign imports and stimulating local industries. By cutting the cost of raw materials, the government hopes to create jobs, encourage investment in pharmaceutical production, and improve Nigeria’s overall healthcare system.
Industry experts have welcomed the move, emphasizing its potential to make Nigeria more self-sufficient in medicine production. Economic analysts also see it as a safeguard against future global supply chain disruptions, which were exposed during the COVID-19 pandemic. The NCS has urged all stakeholders to collaborate in ensuring the smooth implementation of the initiat
