President Bola Tinubu has signed an Executive Order to remove tariffs and taxes on imported pharmaceutical ingredients.
This development was announced by the Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, on his X account on Friday.
The order, which aims to increase the competitiveness of local manufacturers, eliminates tariffs, excise duties, and Value Added Tax on specific machinery, equipment, and raw materials. These materials include Active Pharmaceutical Ingredients (APIs), excipients, and other essential components required for manufacturing crucial health products such as drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
According to Minister Pate, this order is pivotal to the success of the healthcare value chain initiative approved by President Tinubu in October 2023. The Attorney General of the Federation, Lateef Fagbemi (SAN), will be responsible for codifying the new order.
The order also establishes market-shaping mechanisms like framework contracts and volume guarantees to encourage local manufacturers. Furthermore, it mandates collaboration between the Ministers of Health, Finance, and Industry, Trade and Investment to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks.
Key agencies such as the Nigeria Customs Service, NAFDAC, SON, and FIRS will ensure swift implementation of the order, with special waivers and exemptions effective for two years.
“The implication of this order is a 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,” Pate stated.
He also expressed gratitude to President Tinubu for his commitment to Nigeria’s prosperity and acknowledged all contributors to this key milestone.
