Nigeria’s President Bola Tinubu has signed an executive order that removes excise duties, VAT, and other tariffs on imported pharmaceutical inputs which include specified equipment, machinery, components, and other forms of raw materials used in the health sector.
The executive order is expected to lower production costs, making essential medicines more affordable for Nigerians. This move could also rejuvenate Nigeria’s pharmaceutical sector, boost local pharmaceutical production, decrease medication costs, and generate additional employment opportunities.
Tax-exempt items in the order include active pharmaceutical ingredients, excipients, raw materials required for drug production, instant diagnostic kits, syringes and needles, and insecticides.
The tax exemptions and special waivers on pharmaceutical inputs will be in effect for two years.
The Federal Inland Revenue Service and Nigeria Customs Service, along with other relevant ministries and agencies, will enforce the order.
