In a bid to revitalize the Nigerian health sector, President Bola Tinubu, has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.).
The signing of the Executive Order by the President was revealed by the Coordinating Minister of Health and Social Welfare, Mohammad Ali Pate who announced that the executive order introduces zero tariffs, excise duties and value added tax (VAT) on imported pharmaceutical inputs used by pharmaceutical companies.
According to Pate, the Minister of Justice and Attorney General of the Federation, Prince Lateef Fagbemi SAN, will now take the next steps towards codifying the new Order.
The Minister noted that the Executive Order is pivotal to the success of the Initiative for Unlocking the Health Care Value Chain, which was approved in October 2023 by the President.
Specified items eligible for these exemptions under the executive order include Active Pharmaceutical Ingredients (APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, among others.
“The Order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers”, Pate added.
According to the minister, the order mandates collaboration among the ministers of health, finance, as well as industry, trade and investment, to develop a harmonised implementation framework — expediting regulatory approvals and reducing bottlenecks.
Pate said agencies including 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 swift implementation, with special waivers and exemptions effective for two years”.
“The implication of this order is 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,” the minister said.
Pate thanked Tinubu for his courage and commitment to ensure Nigeria is put back on the path to prosperity while also expressing gratitude to everyone who contributed to the ideas that culminated in the consensus that resulted in the significant milestone.