Medicine Prices Set to Decrease as Customs Implements Zero-Tariff on Pharmaceuticals

Medicine Prices Set to Decrease as Customs Implements Zero-Tariff on Pharmaceuticals

The Nigeria Customs Service (NCS) has commenced the implementation of a two-year exemption on import duty and Value Added Tax (VAT) for key pharmaceutical raw materials.

This move is expected to translate to cheaper pharmaceutical products in the country.

The National Public Relations Officer for the NCS, Abdullahi Maiwada, disclosed this in a statement on Wednesday in Abuja.

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

He said 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.

The move, according to the spokesman, was in line with the presidential directives to enhance local healthcare manufacturing, reduce production costs, and attract investments.

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

Medicine Prices Set to Decrease as Customs Implements Zero-Tariff on Pharmaceuticals

By: Babajide Okeowo