President Tinubu and Nigeria Customs Launch Zero Tariff Implementation on Imported Pharmaceutical Inputs


In a bold move to boost the local healthcare manufacturing sector and help lower production costs, the Nigeria Customs Service (NCS) has begun implementing a two-year zero tariff policy on imported pharmaceutical inputs. This significant policy change comes on the heels of President Bola Tinubu’s approval of comprehensive guidelines designed to exempt import duty and value-added tax (VAT) on critical raw materials.

What’s Changing?
The new policy covers a wide range of essential items used in the production of life-saving medicines, including active pharmaceutical ingredients (APIs), excipients, and other raw materials. Additionally, the exemption extends to items such as long-lasting insecticidal nets (LLINs), rapid diagnostic kits, reagents, and even packaging materials. The aim is to create a more conducive environment for pharmaceutical manufacturing and to reduce the overall cost of medications—a pressing issue that has been impacting Nigerians for some time.

The Background
This initiative follows an earlier appeal made in May 2024 by media outlets and various stakeholders who called on President Tinubu, state governors, and lawmakers to tackle the rising cost of medications, often referred to as “drugflation.” Responding to this urgent call, the president signed an executive order that laid the groundwork for a tax-free period on these vital inputs, reaffirming his commitment to strengthening the nation’s healthcare infrastructure.

Enhanced Oversight for a Transparent Rollout
To ensure that the benefits of the policy are realized and that the system remains transparent, the NCS will compile quarterly reports. These reports will detail every importation under the new guidelines, including data on the importers, quantities, and the values of the items. This proactive monitoring is expected to help align the policy’s implementation with its intended objectives, while also reinforcing stakeholder confidence in the process.

A Collaborative Effort for National Health
Officials at the NCS emphasize that the successful rollout of this policy will depend on the collective efforts of multiple stakeholders—ranging from importers and manufacturers to various government agencies. Through collaboration and shared commitment, this move is poised to create a more robust healthcare sector that meets the needs of all Nigerians while also attracting further investment in the pharmaceutical industry.

Looking Ahead
This strategic decision is expected to not only bolster local manufacturing but also contribute to broader economic development. By easing the cost burden on manufacturers, the policy could pave the way for increased production of affordable medications, ultimately benefiting public health and the overall economy.

Stay tuned for more updates on how this policy unfolds and what it could mean for the future of Nigeria’s healthcare landscape.

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