President Bola Tinubu on Friday signed an executive order to eliminate tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs.
This order introduces zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials to reduce production costs and enhance the competitiveness of local manufacturers.
The specified items include Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials needed for manufacturing crucial health products such as drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
The order also establishes market-shaping mechanisms, such as framework contracts and volume guarantees, to encourage local manufacturing.
According to Health Minister Ali Pate, the order mandates collaboration among the ministers of health, finance, and industry, trade, and investment to develop a harmonized implementation framework that will expedite regulatory approvals and reduce bottlenecks.
Pate stated that 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) will ensure swift implementation, with special waivers and exemptions effective for two years.
