The Federal Government of Nigeria has officially implemented a zero Value Added Tax (VAT) on pharmaceutical products and medical devices to help reduce drug prices nationwide. This initiative aims to make essential health supplies more affordable for Nigerians.
In a statement from Alaba R. Balogun, Head of Information at the Federal Ministry of Health, the government confirmed that the Executive Order for the Harmonized Implementation Framework has been cleared for gazetting. This marks a significant step in the process.
The Ministry also announced that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) can now begin enforcing the zero VAT and excise duties on pharmaceutical products and medical devices. Local manufacturers are expected to benefit from these relief measures.
“The Ministry of Health and Social Welfare is pleased to announce the finalization of the Executive Order Harmonized Implementation Framework, which has now been cleared for gazetting,” the statement read. “This critical step ensures that the FIRS and NCS can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices.”
The Ministry anticipates that the introduction of this Executive Order will lead to a significant decrease in the prices of essential pharmaceutical products and medical consumables. This initiative reflects the Ministry’s ongoing commitment to alleviating the physical and financial burdens faced by millions of Nigerians reliant on these vital health supplies.
Furthermore, the gazetting of the Harmonized Implementation Framework aligns with the third pillar of the Ministry’s four-point agenda, which focuses on unlocking the healthcare value chain.
