The Healthcare Federation of Nigeria (HFN) has commended the Nigeria Customs Service (NCS) for implementing the two-year import duty and VAT waiver on pharmaceutical raw materials as a crucial step in strengthening Nigeria’s healthcare sector.
This development stems from sustained advocacy efforts led by HFN, alongside other key stakeholders, to enhance the local production of life-saving medical commodities and improve healthcare delivery nationwide.
HFN began high-level engagements with the NCS in 2024, advocating for policy reforms to streamline customs processes and eliminate financial barriers for pharmaceutical manufacturers.
This effort built on engagements that began in 2022 when HFN initiated discussions with the Federal Ministry of Finance, Budget, and National Planning, presenting a position paper that recommended fiscal policy measures to strengthen Nigeria’s healthcare sector and align it with global best practices. These discussions laid the groundwork for broader stakeholder collaboration, later involving the Presidential Initiative for Unlocking the Healthcare Value Chain, the Federal Ministries of Health and Finance, Nigeria Sovereign Investment Authority, and Nigerian Representatives of Overseas Pharmaceutical Manufacturers.
Together, these stakeholders worked to define the implementation framework, identify eligible companies, and outline the specific pharmaceutical inputs covered under the waiver. “The successful implementation of this waiver is a direct result of continuous engagement and multi-sector collaboration,” said Njide Ndili, president of HFN. “HFN has been at the forefront of advocating for these reforms, and we are pleased to see our efforts, alongside other key stakeholders, contribute to reducing the cost of essential medical products and strengthening local manufacturing capabilities.”
The duty and VAT exemption covers active pharmaceutical ingredients, excipients, diagnostic kits, reagents, medical packaging materials, and other essential inputs needed for pharmaceutical production. By alleviating financial burdens on manufacturers, this policy will help lower the cost of medicines, enhance access to quality healthcare products, and boost the competitiveness of Nigeria’s healthcare industry.
This waiver follows President Bola Tinubu’s executive order, signed in June 2024, which introduced zero tariffs, excise duties, and VAT on essential machinery, equipment, and pharmaceutical raw materials. The executive order was a significant step toward reducing production costs and improving the competitiveness of local manufacturers, reinforcing Nigeria’s commitment to strengthening its healthcare sector.
HFN also played a key role in advocating for this Executive Order, pushing for tax reliefs and regulatory reforms that would enable pharmaceutical manufacturers to scale up local production. As the umbrella body for all private-sector healthcare stakeholders, HFN plays a pivotal role in shaping policies that foster an enabling environment for healthcare investment and innovation in Nigeria.
HFN remains committed to public-private sector collaboration and will continue to engage with government agencies and industry stakeholders to monitor the impact of these waivers.
