In a significant move to enhance local manufacturing of healthcare products, the Nigeria Customs Service (NCS) has announced the implementation of a Presidential Executive Order.
This directive, approved by President Bola Tinubu, aims to reduce the costs of medical equipment and consumables, stimulate local investments, and promote the production of essential medicines.
As part of this initiative, critical raw materials essential for pharmaceutical production will be exempted from import duty and Value Added Tax (VAT) for 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 the benefits of this policy reach legitimate manufacturers, eligibility is limited to recognized pharmaceutical product manufacturers with a valid Tax Identification Number (TIN).
The NCS will compile quarterly reports to monitor the policy’s implementation and ensure transparency.
This move is expected to boost local production, reduce reliance on imports, and create jobs in the healthcare sector.
The NCS remains committed to supporting government policies, facilitating trade, enhancing border security, and driving national development.
Similar initiatives have been implemented in the past, including President Tinubu’s Executive Order introducing zero tariffs, excise duties, and VAT on imported pharmaceutical inputs.
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