In a strategic move to strengthen Nigeria’s healthcare industry, the Federal Government has approved a two-year exemption from Value Added Tax (VAT) and import duties on critical raw materials used in the production of pharmaceutical products.
This major policy shift, announced on Wednesday by the National Public Relations Officer of the Nigeria Customs Service (NCS), Assistant Comptroller Abdullahi Maiwada, is aimed at reducing the cost of essential drug manufacturing and promoting local pharmaceutical production.
Key Highlights of the New Policy:
Two-Year Tax Exemption: Manufacturers of pharmaceutical products will benefit from a two-year waiver on VAT and import duties for key raw materials.
Eligible Materials: The exemption covers a wide range of essential inputs including:
Active Pharmaceutical Ingredients (APIs)
Excipients
Long-Lasting Insecticidal Nets (LLINs)
Rapid Diagnostic Kits
Laboratory reagents
Packaging materials
Eligibility Requirements: Only pharmaceutical manufacturers recognized by the Federal Ministry of Health and Social Welfare—and possessing a valid Tax Identification Number (TIN)—can benefit from the policy.
According to the Customs spokesperson, this initiative is designed to ensure that the relief directly supports legitimate pharmaceutical companies dedicated to improving Nigeria’s medical infrastructure.
Transparency and Monitoring Ensured
To ensure transparency and accountability, the Nigeria Customs Service will release quarterly reports detailing all imports covered by the policy. These reports will include information on the importers, the quantities, and the value of goods brought in under the exemption.
Maiwada emphasized that the Customs Service is committed to supporting government reforms while continuing its core mandate of facilitating trade, securing borders, and driving national development.
Collaborative Effort Needed for Success
The government is calling for active collaboration among all stakeholders—importers, pharmaceutical manufacturers, and regulatory agencies—to ensure the policy delivers on its promise. With united efforts, Nigeria can significantly enhance its capacity to produce affordable and high-quality medical supplies locally.
This bold fiscal move comes at a time when the country is working to reduce its dependence on imported medicines and build a resilient healthcare system capable of serving its growing population.
