FG Exempts Raw Materials For Pharmaceutical Products From VAT

The Federal Government has approved a Value Added Tax (VAT) and import duty exemption on essential raw materials for pharmaceutical production.

The announcement was made by Assistant Comptroller of Customs Abdullahi Maiwada, the National Public Relations Officer of the Nigerian Customs Service (NCS), in a statement on Wednesday, March 26.

Maiwada stated that the exemption will last for two years and will cover key materials such as Active Pharmaceutical Ingredients (APIs), excipients, and other inputs needed for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.

To ensure proper implementation, the exemption applies only to recognized pharmaceutical manufacturers registered with the Federal Ministry of Health and Social Welfare, provided they have a valid Tax Identification Number (TIN). This initiative aims to bolster the local pharmaceutical industry and strengthen Nigeria’s healthcare system.

The NCS reaffirmed its commitment to transparency and effective oversight. It will compile quarterly reports detailing all imports under this policy, including importers, quantities, and values, to ensure compliance and accountability.

Additionally, the agency emphasized its dedication to supporting government policies, facilitating trade, securing borders, and fostering national development. The statement stressed that successful execution of the policy will require collaboration from all stakeholders, including importers, manufacturers, and relevant government bodies, to enhance Nigeria’s healthcare sector.