Breaking: Nigeria’s New Executive Order to Ease VAT and Excise Duties on Healthcare Products
The Nigerian Federal Government has taken a major step towards reducing the financial burden on citizens by finalizing an Executive Order to implement zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices. This groundbreaking move is expected to bring significant relief to millions of Nigerians who rely on these essential health supplies.
According to a statement from the Federal Ministry of Health and Social Welfare, the harmonized implementation framework has been cleared for gazetting, paving the way for local pharmaceutical and medical device manufacturers to fully benefit from the relief measures outlined by President Bola Ahmed Tinubu in the Executive Order.
“This critical step ensures that the Federal Inland Revenue Service and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices,” said Alaba Balogun, the spokesman of the Federal Ministry of Health and Social Welfare.
The implementation of this Executive Order is expected to result in a notable reduction in the prices of essential pharmaceutical products and medical consumables, alleviating the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies.
This development aligns with the Ministry’s unwavering commitment to reducing the financial burden on Nigerians and unlocking the healthcare value chain. The gazetting of the harmonized implementation framework represents the realisation of the third pillar of the Ministry’s four-point agenda, which focuses on achieving this goal.
This move follows a previous Executive Order by President Bola Tinubu to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices, biologicals, medical textiles, and others. With this newest development, Nigeria is one step closer to achieving its goal of making quality healthcare more accessible and affordable for its citizens.
