Nigeria Grants Two-Year Import Duty and VAT Exemption for Pharmaceutical Raw Materials
The Nigeria Customs Service (NCS) has announced a two-year exemption from import duty and Value Added Tax (VAT) for critical raw materials essential for pharmaceutical production. The exemption, granted under a presidential executive order, was disclosed in a statement by NCS National Public Relations Officer, Assistant Comptroller Abdullahi Maiwada.
The relief covers active pharmaceutical ingredients, excipients, and other essential raw materials required for manufacturing medicines, long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials. The exemption aims to enhance local production of healthcare products, lower the costs of medical equipment and consumables, and stimulate local investments in the pharmaceutical sector.
Eligibility for these fiscal incentives is restricted to manufacturers of pharmaceutical products officially recognized by the Federal Ministry of Health and Social Welfare. To qualify, these manufacturers must possess a valid Tax Identification Number, ensuring that only legitimate businesses benefit from the initiative.
To uphold transparency and accountability, the NCS will compile and publish quarterly reports detailing all importations under this policy. These reports will include information on importers, quantities, and values of imported items to ensure the policy's implementation aligns with its intended objectives.
The NCS reiterated its commitment to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and contribute to national development. The service emphasized that the successful execution of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies, to strengthen Nigeria’s healthcare sector and ensure the availability of essential medical supplies.
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