Customs Commence Implementation Of Executive Order On Pharmaceuticals, Healthcare Products
The Nigeria Customs Service (NCS) has announced the commencement of implementation of the Presidential Executive Order on pharmaceuticals and other healthcare products to exempt pharmaceutical raw materials from import duty and Value Added Tax (VAT) for a period of two years.
The initiative aims at enhancing local manufacturing of healthcare products, reducing the costs of medical equipment and consumables, as well as stimulating local investments.
The Comptroller-General of Customs, Bashir Adewale Adeniyi, who disclosed this in a statement also revealed that the Federal government, through Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, has approved the comprehensive guidelines to implement and actualise the objectives of the executive order, naming Emzor Pharmaceuticals and Fidson Nigeria Ltd, with 85 other Pharmaceutical companies as beneficiaries of the directives.
Recall that President Tinubu in the month of June, 2024, signed an executive order to boost local production of healthcare products and reduce costs of pharmaceuticals, which hitherto have become inaccessible and unaffordable for most Nigerians.
The ministry also highlighted the guidelines for qualification for exemption, as well as listed 87 qualified pharmaceutical manufacturers, 102 items exempted from import duty and value added tax (VAT), 715 raw materials, among others.
This is contained in a circular from the Federal Ministry of Finance, titled, “Implementation of Presidential Executive Order to Increase Local Production of Healthcare Products Reduce Cost of Healthcare Equipment and Consumables and Promote Local Investments”.
Adeniyi, who was deputised by the Assistant Comptroller of Customs, Abdullahi Maiwada, in signing the statement, noted that the 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.
To ensure that these fiscal incentives are fully utilised, he stated that the eligibility for exemption 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).
The measure is to ensure that the benefits directly support legitimate manufacturers committed to strengthening Nigeria’s healthcare infrastructure.
The Federal Finance of Ministry further mandated the Nigeria Customs Service (NCS) with the obligation of presenting a quarterly report to it and Federal Ministry of Health and Social Welfare, with the details of all importation; indicating the importer, quantity and value of items, to enhance their monitoring and evaluation of the fiscal policy measure.
