Medicine Prices Set To Drop As Customs Begin Zero-Tariff On Pharma Imports Implementation

Following the rising cost of pharmaceutical products in Nigeria, Nigerians can now heave a sigh of relief as the Nigeria Customs Service (NCS) has begun the implementation of a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials.

This in turn is expected to translate to cheaper pharmaceutical products.

This development was disclosed in a statement on Wednesday by the NCS National Public Relations Officer, Abdullahi Maiwada.

Maiwada, an Assistant Comptroller of Customs, said the policy follows President Bola Tinubu’s approval of guidelines to support local pharmaceutical manufacturing and reduce healthcare costs.

It stated that the tax exemption applies to Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials used in producing medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.

According to the statement, the move is in line with the presidential directives to enhance local healthcare manufacturing, reduce production costs, and attract investments, the guidelines were approved by Tinubu through the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.

Customs said the exemption will cover APIs, excipients, and other raw materials used in the production of essential medicines. Others include long-lasting insecticidal nets (LLINs), rapid diagnostic kits, reagents, and packaging materials.

“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 reads.

“The Nigeria Customs Service remains committed to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.”

NCS stated that the successful implementation of the policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.