In a significant move to enhance Nigeria’s healthcare sector, the Nigeria Customs Service (NCS) has announced the implementation of a presidential executive order aimed at boosting local production of healthcare products. This directive, approved by President Bola Ahmed Tinubu, is designed to reduce the costs of medical equipment and consumables, stimulate local investments, and promote local manufacturing of healthcare products.
Key Provisions of the Executive Order
Exemption from Import Duty and VAT: Critical raw materials essential for pharmaceutical production, including Active Pharmaceutical Ingredients (APIs), excipients, and packaging materials, will be exempt from import duty and Value Added Tax (VAT) for a period of two years.
-Eligibility Criteria: Only manufacturers recognized by the Federal Ministry of Health and Social Welfare, with a valid Tax Identification Number (TIN), will be eligible for these fiscal incentives.
Transparency and Monitoring: The NCS will compile quarterly reports detailing all importations under this policy to ensure effective monitoring and implementation.
Impact on Nigeria’s Healthcare Sector
This executive order is expected to have a significant impact on Nigeria’s healthcare sector, making essential medicines and medical consumables more affordable and accessible to Nigerians. By promoting local production of healthcare products, the government aims to reduce dependence on imports, stimulate economic growth, and create jobs in the healthcare sector.
Collaboration and Implementation
The successful implementation of this policy requires collaboration from all stakeholders, including importers, manufacturers, and relevant government agencies. The NCS has reaffirmed its commitment to supporting government policies while fulfilling its mandate to facilitate trade, enhance border security, and drive national development.
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