President Bola Tinubu has issued an executive order removing tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs, aiming to strengthen Nigeria’s health sector and encourage local production of healthcare products.
Announced by Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare, on Friday, the order is a strategic move to boost the domestic manufacturing of pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, and medical textiles.
“In a transformative effort, President Bola Ahmed Tinubu has signed an Executive Order to enhance local production of healthcare products,” Pate stated.
The Minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi, will oversee the codification of this order.
This initiative is part of the broader effort to enhance the healthcare value chain, known as PVAC_NG, which was approved by President Tinubu in October 2023. The order introduces zero tariffs, excise duties, and VAT on selected machinery, equipment, and raw materials, which is expected to lower production costs and improve the competitiveness of local manufacturers.
Key items under this order include Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials for manufacturing critical health products like drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
The order also establishes market mechanisms, such as framework contracts and volume guarantees, to support local manufacturers.
The implementation requires collaboration among the ministers of health, finance, and industry, trade, and investment to create a unified framework that expedites regulatory processes and reduces obstacles.
Agencies like 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 ensure effective implementation, with special waivers and exemptions valid for two years.
Pate emphasized that this order represents a shift towards market-based incentives to promote medical industrialization, reduce costs through import substitution, and foster job creation in the healthcare value chain.
He expressed gratitude to President Tinubu for his bold leadership and commitment to Nigeria’s prosperity and thanked everyone who contributed to this significant achievement.
 on imported){kind=link}