On Friday, President Bola Tinubu signed an executive order to enhance the local production of healthcare products in Nigeria. This initiative includes pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, and medical textiles.
Ali Pate, the Coordinating Minister of Health and Social Welfare, announced the order on his X handle. The directive mandates collaboration between the Ministers of Health, Finance, Industry, Trade, and Investment to develop a Harmonized Implementation Framework aimed at expediting regulatory approvals and reducing bottlenecks.
To ensure swift implementation, the order provides special waivers and exemptions for two years. The involved agencies include the Nigeria Customs Service, the National Agency for Food and Drug Administration Control (NAFDAC), the Standards Organisation of Nigeria (SON), and the Federal Inland Revenue Service (FIRS).
Pate stated that the order is crucial for the Initiative for Unlocking the Healthcare Value Chain, approved by the President in October 2023. “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,” he said.
The specified items include Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials for manufacturing crucial health products such as drugs, syringes, needles, Long-Lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
Additionally, the order establishes market-shaping mechanisms like framework contracts and volume guarantees to support local manufacturers. This initiative aims to create market-based incentives for medical industrialization, reduce costs through import substitution, and foster job creation in the healthcare value chain.
Pate praised President Tinubu for his courage and commitment to Nigeria’s prosperity and thanked all contributors to the consensus that led to this milestone.
