The Nigeria Customs Service (NCS) has declared a two-year waiver on import duty and Value Added Tax (VAT) for essential raw materials required for the production of pharmaceuticals. The exemption, sanctioned by a presidential executive order, was revealed on Wednesday in a statement issued by the Nigeria Customs Service.
The measure applies to active pharmaceutical ingredients and other critical raw materials used in the production of medicines, long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials.
The Nigeria Customs Service stated that following presidential directives, comprehensive guidelines have been approved by President Bola Tinubu. The measures seek to augment local manufacturing of healthcare products, reduce costs for medical equipment and consumables, and to promote local investments.
For a duration of two years, import duty and value-added tax will not apply to critical raw materials required for pharmaceutical production. The exemption encompasses active pharmaceutical ingredients, excipients, and other vital materials needed for medicine production, long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials.
Assistant Comptroller Abdullahi Maiwada, the NCS National Public Relations Officer, affirmed that the fiscal incentives will be limited to pharmaceutical manufacturers acknowledged by the Federal Ministry of Health and Social Welfare. He added that manufacturers must possess a valid Tax Identification Number to access these benefits.
The initiative will ensure the benefits are directed towards genuine manufacturers committed to improving Nigeria’s healthcare infrastructure.
NCS will prepare quarterly reports on importations under the policy, including data on importers, quantities, and values to assure transparency and effective monitoring. The NCS also reaffirmed its dedication to supporting government policies by facilitating trade, strengthening border security, and promoting national development.
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