FG Removes Customs Duty, VAT On Raw Materials For....

In a bid to aid the nation’s health sector, the Federal Government has directed the removal of customs duty and Value Added Tax (VAT) from raw materials required for manufacturing pharmaceutical products in Nigeria.

Nigeria Customs Service (NCS) disclosed this in a statement issued on Wednesday, stating that critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and 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.

Part of the statement read; “Drawing from Presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments, the Nigeria Customs Service (NCS) is pleased to announce that His Excellency, President Bola Ahmed Tinubu GCFR, through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualise these objectives.

“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.”

Meanwhile, the NCS, in commitment to transparency and effective monitoring, 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.

In the statement signed by the Customs National Public Relations Officer, Abdullahi Maiwada, the NCS reiterated that it remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.

However, the NCS observed that successful implementation of this policy would require collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies to achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians.