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The Healthcare Federation of Nigeria has called on the Nigeria Customs Service to ensure the full implementation of the duty and VAT waivers on pharmaceutical raw materials by issuing circulars to all relevant Zonal Offices and Area Commands.
Recently, the Federal Government implemented a two-year import duty and VAT waiver on pharmaceutical raw materials.
This was in a statement issued by HFN on Wednesday, which said it was a game-changer for Nigeria’s healthcare sector.
According to HFN, the landmark policy is a significant step toward strengthening Nigeria’s healthcare sector by reducing the cost of essential medical products, boosting local manufacturing, and improving healthcare accessibility nationwide.
The statement read, “HFN urges the Nigeria Customs Service to help ensure the full implementation of the waiver by issuing circulars to all Zonal Offices and Area Commands nationwide across airports, seaports, and land borders. This step is crucial to ensuring that all importers and manufacturers benefit from these waivers without bureaucratic hindrances.
“HFN pledges its commitment to help monitor the implementation of these fiscal policy measures by all relevant stakeholders. This will ensure that importers and manufacturers across Nigeria benefit from the waivers without bureaucratic obstacles.”
Also, HFN praised the Federal Government’s implementation of the duty and VAT waiver on pharmaceutical raw materials, saying the initiative promised to reduce the cost of essential medical products, bolster local manufacturing, and improve the accessibility of healthcare nationwide.
“President Bola Tinubu’s government has earned commendations for its efforts to address financial barriers in the pharmaceutical industry, with the waiver covering vital inputs such as Active Pharmaceutical Ingredients, excipients, diagnostic kits, reagents, and medical packaging materials.
“This is a monumental policy that will dramatically reduce the cost of medicines, improve healthcare access, and boost the competitiveness of our healthcare sector.
“HFN has been at the forefront of advocating for these reforms, and we are proud to see our sustained efforts, alongside other stakeholders, finally bear fruit,” said the President of HFN, Njide Ndili.
She added that the policy would assist in lowering the cost of healthcare products, thus enhancing access to quality medicines and services for millions of Nigerians, saying the move was expected to create thousands of jobs, stimulate the local economy, and improve healthcare penetration across the country.
“HFN also extended its gratitude to key government officials who played an instrumental role in facilitating the policy’s adoption. “Among them were Mr. Wale Edun, Minister of Finance and Coordinating Minister for the Economy; Dr. Doris Nkiruka Uzoka-Anite, Minister of State for Finance; Prof. Muhammad Ali Pate, Coordinating Minister of Health and Social Welfare; Dr. Iziaq Kunle Salako, Minister of State for Health; and Bashir Adewale Adeniyi, Comptroller-General of the Nigeria Customs Service.
“The successful implementation of this waiver is a testament to the power of collaboration between government, industry stakeholders, and the Nigeria Customs Service,” Ndili added.
Ndili said the waivers were the result of high-level engagements between the HFN and the Nigeria Customs Service, which began in June 2024.
“These discussions built on previous conversations that began in 2022 with the Federal Ministry of Finance, Budget, and National Planning. A coalition of various stakeholders, including the Presidential Initiative for Unlocking the Healthcare Value Chain, the Nigeria Sovereign Investment Authority, and Nigerian Representatives of Overseas Pharmaceutical Manufacturers, played a crucial role in shaping the final policy framework”, she said.
She explained that the policy was expected to have a far-reaching impact on Nigeria’s economic and healthcare landscape. “By promoting local manufacturing and reducing the nation’s reliance on imports, the waiver is set to foster self-sufficiency in healthcare production. This policy shift is also expected to improve Nigeria’s standing within the African Continental Free Trade Area, increasing the marketability of Nigerian-made healthcare products across the region.
“Beyond the immediate benefits of lowering costs, the policy is poised to attract significant investments, spark innovation, and increase profitability in the healthcare sector. The policy is also expected to stimulate the creation of dedicated Healthcare Industry Free Zones in Nigeria, following successful models from Turkey’s Health Free Zones and Dubai Healthcare City.
“This waiver is more than just a fiscal reform. It’s a launchpad for innovation and industrial growth within Nigeria’s healthcare sector. We anticipate thousands of direct and indirect jobs being created, stimulating local economies and boosting foreign exchange earnings for Nigeria,” she said.
Ndili maintained that the policy would significantly ease the re-exportation of obsolete healthcare equipment in exchange for more advanced medical technologies. “The move to lift the ban on the export of previously imported goods is expected to open up new trade opportunities for Nigerian businesses, she concluded.
