President Bola Ahmed Tinubu has signed an Executive Order eliminating tariffs, excise duties, and VAT on specialized machinery, equipment, and pharmaceutical raw materials.
Announced by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, the order aims to boost local production of essential healthcare products, including pharmaceuticals, diagnostics, medical devices, and textiles.
This initiative is part of the broader Initiative for Unlocking the Healthcare Value Chain, which was approved by the President in October 2023.
The Executive Order emphasizes economic incentives designed to reduce production costs and enhance the competitiveness of local manufacturers.
By covering essential items like Active Pharmaceutical Ingredients (APIs) and Long-lasting Insecticidal Nets (LLINs), the directive seeks to position Nigeria as a leader in healthcare production.
The order also mandates collaboration among key ministries to expedite regulatory approvals and reduce bureaucratic hurdles, with agencies like NAFDAC and the Nigeria Customs Service tasked with ensuring swift implementation over the next two years.
Prof. Pate highlighted that this strategic move could significantly lower healthcare costs and reduce reliance on imports, while creating jobs and retaining economic value within Nigeria.
He also noted the administration’s focus on expanding the national health insurance scheme to ease the financial burden on Nigerians.
Prof. Mojisola Adeyeye, Director General of NAFDAC, further underscored that this initiative aligns with efforts to rejuvenate the local pharmaceutical industry, which has already seen substantial growth under her “5 plus 5” regulatory scheme.
