Abuja, Nigeria — President Bola Ahmed Tinubu has signed an executive order to eliminate tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs. This strategic move aims to bolster local pharmaceutical production and enhance Nigeria’s healthcare sector.
The announcement was made on Friday by Muhammad Ali Pate, the coordinating minister of health and social welfare. The executive order specifically targets machinery, equipment, and raw materials imported for pharmaceutical production, setting them at zero tariffs, excise duties, and VAT.
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“In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu, GCFR @officialABAT, has signed an Executive Order aiming to increase local production of healthcare products,” Pate stated. This initiative encompasses a wide range of healthcare products, including pharmaceuticals, diagnostics, medical devices such as needles and syringes, biologicals, and medical textiles.
The Minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, has been tasked with the next steps towards codifying the new order.
This executive order is seen as a crucial step in advancing the initiative for unlocking the healthcare value chain (PVAC_NG), which received presidential approval in October 2023.
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Pate emphasized that the order aims to reduce production costs and boost the competitiveness of local manufacturers by introducing zero tariffs, excise duties, and VAT on essential machinery, equipment, and raw materials. These items include Active Pharmaceutical Ingredients (APIs), excipients, and other crucial raw materials for producing drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
The order also sets the stage for market-shaping mechanisms such as framework contracts and volume guarantees to encourage local manufacturing.
it mandates collaboration among key ministries and agencies, including the Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS). This collaboration aims to ensure swift implementation and minimize regulatory bottlenecks.
According to Pate, the order is designed to provide market-based incentives that promote medical industrialization, reduce the costs of medical products through import substitution, create and retain economic value, and facilitate job creation within the healthcare value chain.
According to the news new executive order, the waivers and exemptions will be effective for two years.
