The Nigeria Customs Service (NCS) has begun enforcing a two-year exemption on import duties and Value Added Tax (VAT) for essential healthcare products, following a directive from the Federal Government aimed at strengthening the health sector and improving access to critical medical supplies.
In a statement signed by the Assistant Comptroller Abdullahi Maiwada, National Public Relations Officer of the NCS, the waiver applies to Active Pharmaceutical Ingredients (APIs), excipients, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, packaging materials, and other essential raw materials used in pharmaceutical production.
The directive, which aligns with President Bola Ahmed Tinubu’s broader economic policies, was approved by the President through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.
The government’s objective is to enhance local manufacturing of healthcare products, reduce the cost of medical equipment and consumables, and attract investment into the pharmaceutical sector. The removal of import duties and VAT is expected to lower production costs, encourage new investments, and foster a more resilient healthcare industry in Nigeria.
According to the statement, only pharmaceutical manufacturers recognized by the Federal Ministry of Health and Social Welfare will be eligible for the waiver. Additionally, eligible manufacturers must possess a valid Tax Identification Number (TIN), ensuring that the benefits are directed at genuine stakeholders committed to strengthening the country’s healthcare infrastructure.
To ensure transparency and prevent misuse of the waiver, he said the NCS will compile quarterly reports detailing all importations under the policy, including information on importers, quantities, and values of the imported items.
The service emphasized that the monitoring mechanism is designed to ensure that the policy achieves its intended objectives of improving local pharmaceutical production and enhancing access to essential healthcare products.
