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 approved by His Excellency, President Bola Ahmed Tinubu.

 This initiative according to a press statement by Abdullahi Maiwada

The Hon Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has also endorsed comprehensive guidelines intended to actualize these objectives. As part of this initiative, critical raw materials essential for the production of pharmaceutical products will be exempt from import duty and Value Added Tax (VAT) for a period of two years. This exemption includes Active Pharmaceutical Ingredients (APIs), excipients, and other vital materials necessary for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.

Eligibility for these fiscal incentives will be limited to recognized manufacturers of pharmaceutical products, as designated by the Federal Ministry of Health and Social Welfare, provided they hold a valid Tax Identification Number (TIN). This measure is designed to ensure that the benefits of the policy directly support legitimate manufacturers dedicated to strengthening Nigeria’s healthcare infrastructure.

In a commitment to transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations made under this new policy. These reports will include data on importers, quantities, and values of imported items, ensuring that the implementation aligns with its intended objectives.

The Nigeria Customs Service is dedicated to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.

The successful implementation of this policy will require collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. Together, they aim to achieve a robust healthcare sector that meets the needs of all Nigerians.