President Bola Tinubu has signed an executive order to introduce zero tariffs, excise duties and value-added tax (VAT) on imported pharmaceutical inputs for two years.
The coordinating minister of health and social welfare, Muhammad Ali Pate, disclosed this in a statement on Friday, June 28, 2024.
“In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu has signed an Executive Order with the aim of increasing local production of healthcare products pharmaceuticals, diagnostics, devices (such as needles and syringes, biological, medical textile, etc.).
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 for a duration of two years.
Specified items include Active Pharmaceutical Ingredients (APIs), excipients, other essential raw materials required for manufacturing 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.
The implication of this order is pivot towards market-based incentives to encourage medical industrialization, reducing costs of medical products through import substitution over time, creating and retaining economic value and enabling job creation in the healthcare value chain,” said the minister.
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