NCS Implements Presidential Executive Order to Boost Local Production of Healthcare Products

By Chimezie Godfrey

In a significant move to support local manufacturing and reduce the costs of healthcare products, the Nigeria Customs Service (NCS) has unveiled new guidelines following the approval of His Excellency, President Bola Ahmed Tinubu.

The directives, facilitated through the Honourable Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, aim to boost the local production of pharmaceutical products and enhance the nation’s healthcare infrastructure.

In a statement, the Abdullahi Maiwada, Assistant Comptroller of Customs and National Public Relations Officer, noted that under the newly approved policy, critical raw materials required for the production of essential medicines will be exempt from both import duty and Value Added Tax (VAT) for a period of two years.

According to him, these materials include Active Pharmaceutical Ingredients (APIs), excipients, and key components for manufacturing Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents, and packaging materials.

He said,”To ensure that the benefits of these fiscal incentives are directed to the right entities, eligibility is restricted to manufacturers of pharmaceutical products who are recognised by the Federal Ministry of Health and Social Welfare.

“Additionally, manufacturers must possess a valid Tax Identification Number (TIN) to qualify for the exemptions. This measure is designed to support legitimate manufacturers who are committed to contributing to the development of Nigeria’s healthcare sector.

“In a move to promote transparency and efficient policy implementation, the NCS has committed to compiling quarterly reports detailing all importations under this policy. These reports will include data on importers, quantities, and values of the imported items, ensuring that the fiscal incentives are being fully utilised and achieving their intended purpose.

“The successful implementation of this policy will require collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies.Through our collective efforts, we can build a robust healthcare sector that meets the needs of all Nigerians.”

Maiwada reaffirmed the commitment of the Nigeria Customs Service to facilitate trade, enhance border security, and drive national development, in alignment with the government’s overarching goals to foster local investments and reduce healthcare costs.

This new initiative is expected to foster a more self-sufficient pharmaceutical industry in Nigeria, ultimately leading to more affordable healthcare solutions for the Nigerian population.