President Bola Tinubu signed an executive order eliminating tariffs, excise duties, and value-added tax (VAT) on pharmaceutical inputs brought into the country, primarily aiming to revitalize the Nigerian healthcare sector and increase the production of healthcare products. The order is expected to reduce production costs, enhance local manufacturers’ competitiveness, and encourage medical industrialization.
The Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate revealed in a statement on Friday that the executive order aims to revitalize the Nigerian health sector and boost the local production of healthcare products.
The minister said the executive order is crucial in the implementation of the Presidential Healthcare Value Chain Initiative (PVAC_NG) which was launched and approved by the President in October 2023. The Initiative aims to transform the healthcare sector by addressing bottlenecks and unlocking opportunities across the value chain.
“The Order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness,” he said.
“Specified items include Active Pharmaceutical Ingredients (APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINS) and Rapid Diagnostic Kits, among others.
“The Order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.”
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The presidential executive order also directs the Ministers of Health, Finance, and Industry, Trade and Investment to work together to develop a unified implementation framework. This framework will streamline regulatory approvals, eliminate obstacles, and facilitate a more efficient and coordinated approach to healthcare development, ensuring a harmonized and swift execution of the initiative’s objectives.
Pate mentioned that various government 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), will collaborate to ensure a swift and efficient implementation of the initiative. To facilitate this, special waivers and exemptions will be granted for a period of two years, effective immediately.
The minister expressed his heartfelt appreciation to President Bola Tinubu for his courageous leadership and unwavering dedication to restoring Nigeria’s path to prosperity. He also extended his gratitude to all individuals who contributed their ideas and expertise, leading to the consensus that ultimately resulted in this landmark achievement, praising their collective efforts and commitment to driving positive change in the country.
