The Federal Government has officially commenced the implementation of a zero Value Added Tax (VAT) and excise duties policy on pharmaceutical products and medical devices. This move is aimed at significantly reducing drug prices in Nigeria.
According to a statement signed by Alaba R. Balogun, Head of Information at the Federal Ministry of Health, the Executive Order on the Harmonized Implementation Framework has been cleared for gazetting, paving the way for relevant agencies to enforce the new tax exemptions.
Following the gazetting, both the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) are now authorized to begin applying the zero VAT and excise duties on pharmaceutical goods and medical devices.
The relief measures are expected to benefit local manufacturers of these products as well, enhancing the production and affordability of critical medical supplies.
The Ministry of Health emphasized that this move reflects its dedication to reducing the financial burden on Nigerians, many of whom rely on essential health products.
The Ministry highlighted that this initiative marks a significant step in its broader agenda to improve healthcare access in the country.
“We anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables,” the statement read.
The zero VAT policy also represents the realization of the third pillar of the Ministry’s 4-point agenda, focusing on unlocking the healthcare value chain and enhancing the overall well-being of Nigerians.
