Customs Exempts Pharmaceutical Raw Materials From Import Duty, VAT
By Sulaimon Salau
The Nigeria Customs Service (NCS) has stopped collection of import duty and Value Added Tax (VAT) on all critical raw materials essential for the production of pharmaceutical products for a period of two years.
Implementing the new policy in compliance with President Bola Ahmed Tinubu’s directive, Comptroller-General of Customs, Adewale Adeniyi said this is aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments.
Adeniyi, in a statement signed by the Assistant Comptroller of Customs and National Public Relations Officer, NCS, Abdullahi Maiwada, said 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.
He explained 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,” he stated.
“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,” he said
Assuring that the Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development, he noted that 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,” he stated.
