From Godwin Tsa, Abuja
To crash the skyrocketing prices of medicines in Nigeria, the Nigeria Customs Service (NCS) has commenced the implementation of the federal government’s directive exempting critical raw materials essential for the production of pharmaceutical products from import duty and Value Added Tax (VAT) for two years.
The decision resonates pleasantly with dealers and producers of medicines, who have perennially complained that the cost of importing raw materials was sky-high and was responsible for the high cost of medicines.
The exemption, according to the Service, covers Active Pharmaceutical Ingredients (APIs), excipients and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.
The decision follows the approval by President Bola Tinubu, through the Minister of Finance Coordinating Minister of the Economy, Olawale Edun, for the implementation of the presidential directives aimed at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments.
A statement by the National Public Relations Officer (NPRO), Abdullahi Maiwada, an Assistant Comptroller of Customs said, “to ensure that these fiscal incentives are fully utilised, eligibility is limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number (TIN). This measure ensures that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure.
The statement added ‘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 said it 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.