The Healthcare Federation of Nigeria has requested the Nigeria Customs Service to guarantee complete enforcement of duty and VAT exemptions on pharmaceutical ingredients through the distribution of directives to all pertinent zonal offices and area commands.

Recently, the Federal Government introduced a two-year exemption from import duties and VAT on pharmaceutical raw materials.

The Health Federation of Nigeria (HFN) released a statement on Wednesday stating that this development would be transformative for Nigeria’s healthcare industry.

As stated by HFN, this pivotal policy represents a crucial move towards enhancing Nigeria’s health care system by decreasing the expenses associated with vital medical supplies, supporting domestic production, and increasing overall access to health services across the country.

The declaration stated, “HFN calls upon the Nigeria Customs Service to assist in the complete enforcement of the exemption by distributing directives to every zonal office and area command throughout the country’s airports, sea ports, and land borders. This measure is essential for guaranteeing that all exporters and producers can take advantage of these exemptions free from unnecessary red tape.”

HFN commits to assisting in monitoring the execution of these fiscal policy initiatives by all pertinent parties. This will guarantee that both importers and manufacturers throughout Nigeria can take advantage of the exemptions free from bureaucratic hurdles.

Additionally, HFN commended the Federal Government for implementing the exemption from duties and value-added tax on pharmaceutical raw materials, stating that this measure was expected to lower the prices of vital medicinal items, support domestic production, and enhance overall access to health services across the country.

President Bola Tinubu’s administration has received praise for tackling financial obstacles within the pharmaceutical sector, through a waiver program that includes essential components like Active Pharmaceutical Ingredients, excipients, diagnostic kits, reagents, and medical packaging supplies.

This is an enormous policy initiative aimed at significantly lowering medication costs, enhancing accessibility to healthcare services, and strengthening the competitive edge of our healthcare industry.

“HFN has been leading the charge for these reforms, and we are delighted to witness our persistent efforts, along with those of other stakeholders, ultimately come to fruition,” stated Njide Ndili, the President of HFN.

She mentioned that this policy aims to reduce the expense of health care items, thereby improving access to high-quality medications and services for many Nigerians. She noted that the initiative should lead to numerous job creations, boost the domestic economy, and enhance overall health care coverage throughout the nation.

HFN additionally expressed deep appreciation towards prominent governmental figures whose contributions were crucial in advancing the implementation of this policy. Notable among these individuals were Mr. Wale Edun, serving as both the Minister of Finance and Coordinating Minister for the Economy; Dr. Doris Nkiruka Anite-Uzoka, holding the position of Minister of State for Finance; Professor Muhammad Ali Pate, acting as Coordinating Minister for Health and Social Welfare; Dr. Iziaq Kunle Salako, appointed as Minister of State for Health; and finally, Bashir Adewale Adeniyi, recognized as the Comptroller-General of the Nigerian Customs Service.

“The effective execution of this waiver underscores the strength of cooperation among government bodies, industry participants, and the Nigeria Customs Service,” Ndili noted additionally.

Ndili stated that the exemptions were due to intensive discussions at senior levels between the HFN and the Nigerian Custom Service, starting from June 2024.

These talks expanded upon earlier discussions initiated in 2022 between the Federal Ministry of Finance, Budget, and National Planning,” she explained. “A group comprising multiple parties such as the Presidential Initiative for Unlocking the Healthcare Value Chain, the Nigeria Sovereign Investment Authority, and Nigerian Representatives of Overseas Pharmaceutical Companies significantly influenced the development of the ultimate policy framework.

She stated that this policy would significantly influence Nigeria’s economic and healthcare environment. “Encouraging domestic manufacturing and decreasing dependence on imported goods, the exemption aims to boost self-reliance in health care production. Additionally, this change in policy is anticipated to enhance Nigeria’s position within the African Continental Free Trade Area, thereby boosting the regional appeal of locally produced health care items.”

Past the direct advantages of reducing expenses, this policy is set to draw considerable investment, foster innovation, and boost profits within the healthcare industry. Additionally, it anticipates catalyzing the establishment of specialized Healthcare Industry Free Zones in Nigeria, inspired by effective examples such as Turkey’s Health Free Zones and Dubai Healthcare City.

“This waiver goes beyond mere fiscal restructuring; it serves as a catalyst for innovation and industrial expansion in Nigeria’s healthcare industry. We expect the creation of numerous direct and indirect employment opportunities, which will invigorate local economies and enhance foreign exchange revenues for Nigeria,” she stated.

Ndili argued that this policy would considerably facilitate the re-exportation of outdated healthcare machinery in return for more sophisticated medical technology. “Lifting the prohibition on reselling items initially brought into the country should create fresh trading prospects for companies in Nigeria,” she ended her statement.

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