The Federal Government has granted Value Added Tax (VAT) and import duty exemption on critical raw materials essential for the production of pharmaceutical products. The announcement was made by the National Public Relations Officer of the Nigerian Customs Service (NCS), Assistant Comptroller of Customs Abdullahi Maiwada, in a statement on Wednesday, March 26.
Maiwada explained that the exemption will apply for two years and will cover essential raw materials such as Active Pharmaceutical Ingredients (APIs), excipients, and other materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
To ensure the full utilization of this fiscal incentive, the exemption is limited to manufacturers of pharmaceutical products recognized by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number (TIN). This measure is intended to support legitimate manufacturers and strengthen Nigeria’s healthcare infrastructure.
The NCS also emphasized its commitment to transparency and effective monitoring. The agency 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 goals are achieved.
The NCS reiterated its dedication to supporting government policies while facilitating trade, enhancing border security, and driving national development. Successful implementation of this policy, the statement noted, will require collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies, to achieve a robust healthcare sector in Nigeria.
Source: Linda Ikeji
