By Suleiman Anyalewechi
The authorities of the Nigeria Customs Service NCS, on Wednesday, March 26, 2025, announced the exemption of critical raw materials for the production of pharmaceutical products from import duty and Value Added Tax VAT.
The exemption regime, according to the Service, will last for the next two years.
A statement issued by the National spokesperson for the NCS, Abdullahi Aliyu Maiwada ACC, noted that the exemption covers Active Pharmaceutical Ingredients APIs, excipients, and other vital raw materials required for the manufacturing of essential medicines, long-lasting Insecticides Nets, Rapid Diagnostic Kits, reagents,as well as packaging materials.
The NCS Management explained that the policy is in sinc with the presidential directives aimed at enhancing local production of healthcare products, and other essential medical materials.
“Drawing from the 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 Custom Service NCS is pleased to announce that His Excellency, President Bola Ahmed Tinubu, through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualize these objectives.
“Consequently, critical DA materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax 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, Rapid Diagnostic Kits, reagents and packaging materials.
To ensure that these fiscal incentives are fully utilized, eligibility 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 ensures that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure.
“In commitment to transparency ,and effective monitoring ,the NCS 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.”, the statement reads in part.
The NCS, while expressing its commitment towards supporting and implementing Government policies, also, reaffirmed its readiness to fulfilling its core mandate of trade facilitation and revenue generation.
It, therefore, called for the support and cooperation of all stakeholders towards ensuring a successful implementation of the tax and duty exemption policy.
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