President Bola Tinubu has enacted an executive order to eliminate tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs, as announced by the Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, on Friday, June 28.

In a bid to rejuvenate Nigeria’s healthcare sector and bolster local production of essential medical supplies, the executive order aims to foster the manufacturing of healthcare products such as pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, and medical textiles.

“The transformative executive order signed by His Excellency President Bola Ahmed Tinubu, GCFR, is geared towards enhancing local production capabilities in healthcare products,” stated Pate.

The Minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, will oversee the codification of the new order, which aligns with the Healthcare Value Chain Initiative (PVAC_NG) approved by the president in October 2023.

Key provisions of the order include the removal of tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials essential for healthcare product manufacturing.

These include Active Pharmaceutical Ingredients (APIs), excipients, and other crucial materials needed for the production of drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.

Furthermore, the executive order introduces market-shaping mechanisms such as framework contracts and volume guarantees to stimulate local manufacturing.

The implementation will involve collaborative efforts among the Ministries of Health, Finance, Industry, Trade, and Investment to streamline regulatory processes and minimize bottlenecks.

Pate emphasized that 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 swiftly execute the order, ensuring special waivers and exemptions remain effective for two years.

“This executive order marks a pivotal shift towards market-based incentives for medical industrialization, aiming to lower costs of medical products through import substitution, thereby creating economic value and fostering job opportunities in the healthcare sector,” remarked Pate.

He extended gratitude to President Tinubu for his leadership and dedication to advancing Nigeria’s prosperity, acknowledging the collective effort that led to this significant milestone.

END.