President Tinubu Signs Executive Order to Boost Local Healthcare Production
Abuja, Nigeria – In a bid to bolster the Nigerian healthcare sector and promote local production of essential medical supplies, President Bola Tinubu has signed an Executive Order introducing zero tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs.
Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare, announced the executive action aimed at revitalizing the health sector and stimulating domestic manufacturing of healthcare products. He highlighted the significance of the order in fostering the production of pharmaceuticals, diagnostics, medical devices (such as needles and syringes), biologicals, and medical textiles within Nigeria.
Key Provisions of the Executive Order
Pate outlined that the Executive Order mandates the elimination of tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials essential for manufacturing healthcare products. This strategic move aims to reduce production costs, enhance local manufacturers’ competitiveness, and pave the way for import substitution.
Supporting Local Manufacturers
The order specifies Active Pharmaceutical Ingredients (APIs), excipients, and other critical raw materials necessary for the production of drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits as exempt from duties. It also introduces market-shaping mechanisms like framework contracts and volume guarantees to encourage local production.
Collaborative Implementation Framework
To expedite regulatory approvals and streamline implementation, the Executive Order mandates collaboration among the Ministries of Health, Finance, Industry, Trade and Investment. This coordinated effort is expected to reduce bureaucratic bottlenecks and ensure swift enforcement.
Swift Implementation and Regulatory Support
Agencies including the Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS) are tasked with ensuring the prompt implementation of the order. Special waivers and exemptions will be effective for two years to facilitate a smooth transition for local manufacturers.
Impact and Future Outlook
Minister Pate emphasized that the Executive Order signifies a pivotal shift towards market-based incentives aimed at promoting medical industrialization, reducing costs of medical products through local production, creating economic value, and fostering job creation in the healthcare sector.
Acknowledgments and Gratitude
In concluding his statement, Minister Pate expressed appreciation to President Tinubu for his leadership and commitment to advancing Nigeria’s healthcare capabilities. He also thanked stakeholders who contributed to shaping the policies culminating in this landmark initiative.
This executive action follows a call to action from various stakeholders to address rising medication costs and enhance local manufacturing capacities, reflecting a concerted effort towards sustainable healthcare development in Nigeria.
