In a bid to revitalize Nigeria’s health sector, President Bola Tinubu has signed an Executive Order aimed at boosting local production of healthcare products and reducing costs. The order targets various healthcare products, including pharmaceuticals, diagnostics, medical devices, and textiles.
Coordinating Minister of Health and Social Welfare, Muhammad Pate, announced that the new order introduces zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials. Pate emphasized that this move is designed to reduce production costs and enhance the competitiveness of local manufacturers.
The order comes as Nigeria faces rising medication costs, partly due to the exit of multinational pharmaceutical companies like GlaxoSmithKline (GSK) and Sanofi. The Attorney General of the Federation, Lateef Fagbemi, will take steps to codify the new order.
Key provisions include the removal of tariffs on Active Pharmaceutical Ingredients (API), excipients, and other essential raw materials. The order also establishes market-shaping mechanisms to encourage local manufacturing, with special waivers and exemptions effective for two years.
The National Agency for Food and Drug Administration and Control (NAFDAC) reported that 105 applications for drug manufacturing facilities have been approved, with 35% already completed. NAFDAC Director-General, Mojisola Adeyeye, noted that over 20 newly registered local manufacturers have invested over $2 billion in WHO-compliant facilities.
Pate concluded that this executive order is a significant step towards medical industrialization, reducing costs through import substitution, and creating jobs in the healthcare sector.
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