Nigeria Customs Service Cites Lowering the Prices of Healthcare Products as the Reason for Exempting Healthcare Products and Raw Materials from Duties and VAT

The Nigeria Customs Service (NCS) has announced the exemption of healthcare product raw materials from import duties and Value Added Tax (VAT) as part of an initiative to lower the cost of essential medicines and medical supplies. This move aligns with President Bola Tinubu’s Executive Order, which seeks to make healthcare more affordable and accessible to Nigerians. The policy, approved through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, is expected to drive down production costs for local pharmaceutical manufacturers.

According to Customs Spokesman Abdullahi Maiwada, the exemption will last for two years and will apply exclusively to manufacturers recognized by the Federal Ministry of Health. The policy covers critical raw materials such as Active Pharmaceutical Ingredients (APIs), excipients, Long-Lasting Insecticidal Nets (LLINs), diagnostic kits, reagents, and packaging materials. Only pharmaceutical manufacturers with a valid Tax Identification Number (TIN) will be eligible for these incentives to ensure compliance and prevent abuse of the policy.

To maintain transparency, the Nigeria Customs Service has committed to compiling quarterly reports that will detail all importations under this policy. These reports will include information on importers, quantities, and values of imported items, ensuring the policy is implemented as intended. The exemption is expected to support the healthcare sector, reduce costs for patients, and enhance Nigeria’s capacity to produce essential medicines domestically. By easing the financial burden on manufacturers, the government aims to strengthen Nigeria’s healthcare infrastructure and improve public health outcomes.