ABUJA, NIGERIA (Media Talk Africa) — President Bola Ahmed Tinubu has taken a significant step to reduce the cost of pharmaceuticals in Nigeria by signing an Executive Order that eliminates tariffs, excise duties, and Value Added Tax (VAT) on specialized machinery, equipment, and pharmaceutical raw materials.
The announcement was made by the Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, on his official X page. The Executive Order aims to bolster local production of essential healthcare products, including pharmaceuticals, diagnostics, medical devices, biologicals, and medical textiles.
“In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu, GCFR, has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textiles, etc.),” Pate stated. “The Order introduces zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.”
This new policy comes in response to a surge in pharmaceutical prices driven by inflation and the recent exit of GlaxoSmithKline Consumer Nigeria Plc from the Nigerian market. The pharmaceutical sector has been under pressure, with rising costs affecting the affordability of essential medications.
In a previous interview, Dr. Uche Ojinmah, the former President of the Nigerian Medical Association, highlighted the decline in life expectancy due to escalating drug prices, emphasizing the urgent need for intervention in the pharmaceutical sector.
The Executive Order is expected to have a positive impact on the healthcare value chain in Nigeria by encouraging local manufacturing and making essential medical products more affordable for Nigerians.
