Healthcare products, raw materials to be VAT exempted

The Nigeria Customs Service (NCS) yesterday announced the exemption of raw materials for the production of healthcare products in the country from both duties and Value Added Tax (VAT).

Customs Spokesman, Abdullahi Maiwada (AC), in a statement, said that the move was in line with President Bola Tinubu’s Executive Order, aimed at driving down prices of such projects.

He said: “The Nigeria Customs Service (NCS) is pleased to announce that His Excellency, President Bola Ahmed Tinubu GCFR, through the Honourable 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 (VAT) for a period of two years.

“This exemption 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 NCS disclosed that the exemption would be for a period of two years and limited to only manufacturers recognised by the Federal Ministry of Health.

According to the statement, “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.”

In commitment to transparency and effective monitoring, the NCS promised to 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.