Lara Adejoro, Abuja
In a move to reduce the hike in prices of drugs, the Federal Government has finalised the Executive Order on the implementation of zero Value-Added Tax and excise duties on pharmaceutical products and medical devices.
This was disclosed in a press statement on Wednesday signed by the Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, Alaba Balogun.
On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate announced on his X handle that in a transformative move to revitalise the Nigerian health sector, President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, and among others.
He said the order also provides for establishing market-shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.
The minister added that the the implication of the order is to pivot towards market-based incentives to encourage medical industrialisation, 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 statement noted that the finalisation of the Executive Order harmonised implementation framework has now been cleared for gazetting.
“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.
“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by His Excellency, President Bola Ahmed Tinubu, in the Executive Order.
“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables. This development aligns with the Ministry’s unwavering commitment to reducing both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies,” it stated.
It added that the gazetting of the harmonized implementation framework represents the realisation of the third pillar of the ministry’s four-point agenda, which focuses on unlocking the healthcare value chain.
“By creating an environment that supports local manufacturers, we are
fostering a healthier, more self-reliant nation, and ensuring that quality healthcare becomes more accessible and affordable for all.
‘The gazetted copies of the harmonized implementation framework will be distributed to the relevant government agencies, including FIRS and Customs for immediate action.
“Undoubtedly, today is another great day for our country and a huge win for the health sector. We are grateful to President BAT, for his continued commitment to improving the healthcare sector, and supporting our local industries,” it concluded.
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