The Nigeria Customs Service (NCS) has commenced the implementation of a two-year exemption on import duty and value-added tax (VAT) for pharmaceutical raw materials, following President Bola Tinubu’s approval of comprehensive guidelines for the policy.
The implementation, which took effect on Wednesday, March 26, 2025, comes nearly a year after a media organization,
The NCS made an appeal on May 23, 2024, urging the President, state governors, and lawmakers to take urgent policy and legislative action to address the escalating cost of medications, popularly referred to as “drugflation.”
Following calls for intervention, President Tinubu signed an executive order in June 2024, introducing zero tax on imported pharmaceutical inputs for a specified period.
The policy aims to boost local pharmaceutical manufacturing, reduce production costs, and attract investments into the sector.
The NCS, in a statement on Wednesday, confirmed that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, approved the guidelines on behalf of the President.
The tax exemption covers active pharmaceutical ingredients (APIs), excipients, and other raw materials essential for producing medicines.
Additionally, the waiver applies to Long-lasting insecticidal nets (LLINs), rapid diagnostic kits, reagents, and packaging materials used in drug manufacturing.
To ensure transparency and proper monitoring, the NCS announced plans to compile and publish quarterly reports detailing importations under the policy.
“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 statement read.
The agency further reaffirmed its dedication to supporting government policies while fulfilling its mandate of trade facilitation, border security, and national economic development.
The NCS emphasized that successful implementation of the policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.
“Through collective efforts, we can achieve the shared goal of a robust healthcare sector that meets the needs of all Nigerians,” the statement added.
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