Nigeria Customs Service Implements Presidential Order to Boost Local Healthcare Production

Nigeria Customs Service Implements Presidential Order to Boost Local Healthcare Production

Abuja, Nigeria – March 26, 2025

In a bid to enhance local manufacturing of healthcare products and reduce the cost of medical equipment and consumables, the Nigeria Customs Service (NCS) has announced the implementation of a Presidential Executive Order aimed at stimulating domestic investment in the sector.

The directive, issued by President Bola Ahmed Tinubu GCFR, was conveyed through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun. It outlines a set of fiscal incentives designed to support the production of essential medical supplies in Nigeria.

Key Highlights of the Policy

1. Tax Exemptions on Critical Raw Materials

   • For the next two years, import duties and Value Added Tax (VAT) will be waived on key pharmaceutical raw materials, including Active Pharmaceutical Ingredients (APIs), excipients, reagents, and packaging materials.

   • The exemption also covers raw materials used for manufacturing Long-Lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, which are essential for controlling diseases such as malaria.

2. Eligibility Criteria for Beneficiaries

   • The tax relief is exclusive to pharmaceutical manufacturers recognized by the Federal Ministry of Health and Social Welfare.

   • Eligible companies must also hold a valid Tax Identification Number (TIN) to ensure compliance and accountability.

3. Strict Monitoring and Transparency Measures

   • To prevent misuse of the policy, the NCS will release quarterly reports documenting all importations under the exemption.

   • These reports will provide detailed data on importers, quantities, and values of imported items to ensure alignment with the policy’s intended goals.

Customs Reaffirms Commitment to Trade Facilitation

The Nigeria Customs Service emphasized its dedication to supporting government initiatives that foster economic growth, while maintaining its core responsibilities of trade facilitation and border security.

“Successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. Through our collective efforts, we can build a stronger healthcare sector that meets the needs of all Nigerians,” said Abdullahi Maiwada, Assistant Comptroller of Customs and National Public Relations Officer, speaking on behalf of the Comptroller-General of Customs.

The NCS urged stakeholders to adhere to the new guidelines, assuring them of its commitment to ensuring a seamless and efficient implementation process.