ZAINAB JUNAID
President Bola Ahmed Tinubu, GCFR, through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved comprehensive guidelines to implement zero tariff, excise duties and Value Added Tax (VAT) policy on imported pharmaceutical essential raw materials.
This was announced on Wednesday in a statement issued by the National Public Relations Officer, of the Nigeria Customs Service, Assistant Comptroller of Customs, Abdullahi Maiwada.
Recall that the President, nine months ago had signed an executive order to introduce zero tariffs, excise duties and Value Added Tax (VAT) on imported pharmaceutical raw materials. This is to increase local production of healthcare products including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile among others
According to the NCS statement, the Presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments.
Essential raw materials for the production of pharmaceutical products will consequently be exempted from import duty and Value Added Tax (VAT) for a period of two years.
“This 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.
“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.
“In commitment to transparency and effective monitoring, the Service 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.
“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.
“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,” the statement read.
