Abuja, March 27, 2025- The federal government has granted a two-year import duty and Value Added Tax exemption for critical raw materials essential for production of drugs.
The duty and VAT exemption was granted under a Presidential Executive Order
The Nigeria Customs Service (NCS) disclosed in a statement issued by Abdullahi Maiwada, its Spokesman
The NCS said the exemption covered critical raw materials essential for the production of pharmaceutical products and other essential raw materials needed for producing medicines, long-lasting insecticidal nets, rapid diagnostic kits, reagents, and packaging materials.
The statement reads: “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 is pleased to announce that President Bola Tinubu, through the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to actualise these objectives.
“Consequently, critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax for a period of two years.
“This exemption covers Active Pharmaceutical Ingredients, excipients, and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets, Rapid Diagnostic Kits, reagents, and packaging materials.”
According to the NCS, eligibility for the exemption is limited to manufacturers of pharmaceutical products which possess a valid Tax Identification Number and recognised by the Federal Ministry of Health and Social Welfare.
“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 Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.
“Successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. Through our collective efforts, we can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians,”
