The Nigeria Customs Service (NCS) has begun implementing a Value Added Tax (VAT) and import duty exemption on raw materials crucial for pharmaceutical production. This move aligns with President Bola Tinubu’s Executive Order aimed at boosting local manufacturing of healthcare products.
The exemption, which will last for two years, covers Active Pharmaceutical Ingredients (APIs), excipients, reagents, Long-Lasting Insecticidal Nets (LLINs), rapid diagnostic kits, and packaging materials essential for drug manufacturing.
Only pharmaceutical manufacturers recognized by the Federal Ministry of Health and Social Welfare and possessing a valid Tax Identification Number (TIN) will benefit from these incentives.
Experts believe this policy will significantly reduce the cost of medicines, particularly locally manufactured antibiotics and antimalarial drugs.
Former PSN National Secretary, Pharm. Iyiola Gbolagade, hailed the move as a step toward lowering medicine prices. Ex-ACPN FCT Chairman, Pharmacist Eneojo Made, noted that eliminating VAT and duties on APIs would enhance medicine production and availability. Former ACPN National Publicity Secretary, Kenneth Edeh Ujah, emphasized that reduced production costs would lead to more affordable drugs for consumers. Immediate past PSN President, Prof. Cyril Odianose Usifoh, highlighted the comprehensive scope of the exemption, which covers essential pharmaceutical and medical products.
The Federal Ministry of Health and Social Welfare has described the policy as a major milestone, ensuring that local manufacturers fully benefit from President Tinubu’s relief measures.
