The Nigeria Customs Service (NCS) has commenced the implementation of a two-year tax exemption on imported pharmaceutical raw materials, following President Bola Tinubu’s approval of comprehensive guidelines for the policy.
The initiative, aimed at reducing production costs and boosting local drug manufacturing, covers import duty and value-added tax (VAT) exemptions on active pharmaceutical ingredients (APIs), excipients, reagents, diagnostic kits, long-lasting insecticidal nets (LLINs), and packaging materials.
According to a statement released on Wednesday, the implementation aligns with the government’s efforts to enhance local healthcare manufacturing and attract investments in the pharmaceutical sector. The guidelines were approved by President Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The move follows an executive order introducing zero tax on pharmaceutical inputs, which President Tinubu signed last year.
READ ALSO: Customs Suspends 4% Import Fee, Seeks Stakeholder Input
As part of the implementation, the NCS will compile quarterly reports detailing importations under the policy, tracking importers, quantities, and values to ensure transparency and adherence to its objectives.
“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development,” the statement read.
The NCS emphasized that the policy’s success depends on collaboration among stakeholders, including manufacturers, importers, and relevant agencies, to strengthen Nigeria’s healthcare sector and ensure affordable medication for all citizens.