The Nigeria Customs Service (NCS) has announced the implementation of a Presidential Executive Order aimed at enhancing local manufacturing of healthcare products, reducing medical costs, and stimulating investment in the sector.
The directive, approved by President Bola Ahmed Tinubu, was communicated through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun.
As part of the policy, critical raw materials for pharmaceutical production will be exempt from import duty and Value Added Tax (VAT) for two years. The exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, essential medicine components, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
To ensure the incentives benefit legitimate businesses, eligibility is restricted to manufacturers recognized by the Federal Ministry of Health and Social Welfare with a valid Tax Identification Number (TIN). This measure aims to strengthen Nigeria’s healthcare infrastructure by supporting certified local manufacturers.
ALSO READ: SENEGAL BEGINS CONSTRUCTION OF MODERN BURN TREATMENT CENTER
For transparency and accountability, the NCS will generate quarterly reports detailing import data, including the names of importers, quantities, and values of imported materials. This will help track the policy’s effectiveness and ensure it aligns with its intended objectives.
The NCS reaffirmed its commitment to supporting government policies that facilitate trade, enhance border security, and drive national development. The success of this initiative, the agency noted, depends on the collaboration of key stakeholders, including importers, manufacturers, and government agencies.
