The Nigeria Customs Service (NCS) has announced the implementation of a presidential executive order granting a two-year exemption from import duty and value-added tax (VAT) to critical raw materials used in local pharmaceutical manufacturing.

The policy, approved by President Bola Ahmed Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, directs that the tax exemption applies to active pharmaceutical ingredients (APIs), excipients, reagents, packaging materials and other essential raw materials required to produce key medical items such as basic medicines, long-lasting insecticidal nets (LLINs) and rapid diagnostic kits.

The Comptroller-General of Customs, Bashir Adeniyi, in a directive issued yesterday, stated that the measure is expected to stimulate local investment, enhance access to affordable medical products and support the country’s healthcare sector. He also added that the order is aimed at strengthening the local production of healthcare products and reducing the cost of essential medical supplies.

To ensure the fiscal incentives reach their intended beneficiaries, Adeniyi said, only recognised pharmaceutical manufacturers registered with the Federal Ministry of Health and Social Welfare will be eligible.

The Customs boss said these manufacturers must also possess a valid tax identification number (TIN) to qualify for the exemption. He said the NCS has committed to quarterly reporting on all imports under this policy, detailing importers, quantities, and values of the imported materials to maintain transparency and accountability.

“The NCS remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development. Through our collective efforts, we can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians,” he stated.

Adeniyi said the successful implementation of this initiative will depend on the collaboration of key stakeholders, including importers, manufacturers and relevant government agencies.

He said by leveraging these collective efforts, Nigeria aims to strengthen its healthcare infrastructure and enhance the availability of locally produced medical products for its citizens.