In a significant move to boost the healthcare sector and lower prices, the Nigeria Customs Service (NCS) has commenced the implementation of zero tax on imported pharmaceutical inputs for two years.
This development follows President Bola Tinubu’s approval of comprehensive guidelines exempting import duty and value-added tax (VAT) on critical raw materials used in pharmaceutical manufacturing.
The implementation comes almost a year after an appeal was made to President Tinubu to address the escalating cost of medications, also known as “drugflation.”
In response, Tinubu signed an executive order introducing zero tax on imported pharmaceutical inputs in June 2024.
The exemption will cover essential raw materials, including:
– Active Pharmaceutical Ingredients (APIs): fundamental components for manufacturing various drugs
– Excipients: substances formulated alongside the active ingredient to improve delivery
– Long-lasting Insecticidal Nets (LLINs): crucial for malaria prevention
– Rapid Diagnostic Kits: essential for quick and accurate disease diagnosis
– Reagents and Packaging Materials: necessary for pharmaceutical production
To ensure transparency and effective monitoring, the NCS will compile quarterly reports detailing all importations under this policy.
The service emphasizes that successful implementation requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.