Tinubu signs Executive Order removing tariffs, VAT on pharma imports

The announcement was made by the coordinating minister of Health and Social Welfare in Nigeria, Prof. Muhammad Ali Pate, on his X page.  

This initiative focuses on pharmaceuticals, diagnostics, medical devices such as needles and syringes, biologicals, and medical textiles, positioning Nigeria to enhance its healthcare value chain significantly. 

According to Pate, the minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, is now to take the next steps towards adapting the order.  

The Executive Order, which was a significant step in the Initiative for Unlocking the Healthcare Value Chain approved by the President in October 2023, emphasizes economic incentives to stimulate domestic manufacturing.  

It introduces zero tariffs, excise duties, and VAT on key machinery, equipment, and raw materials, reducing production costs and enhancing the competitiveness of local manufacturers.  

“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 textile, 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.” 

The Order calls for collaboration among the Ministers of Health, Finance, Industry, Trade and Investment to develop a Harmonized Implementation Framework.  

This move signals a shift towards market-based incentives, aiming to encourage medical industrialization and reduce reliance on imports.  

By fostering local production, the initiative is expected to lower healthcare costs, create jobs, and retain economic value within Nigeria. 

In a webinar held in May 2024, the Director General of NAFDAC, Prof. Mojisola Adeyeye, and the Coordinating Minister of Health and Social Welfare, Prof. Ali Pate, addressed the escalating costs of medicines in Nigeria.  

Prof. Pate reiterated the administration’s focus on addressing the root causes of high pharmaceutical costs, which include Forex devaluation and infrastructure deficits.

He stressed that expanding the national health insurance scheme could alleviate the financial burden on Nigerians, making healthcare more affordable through a third-party payer system.