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President Tinubu Signs Executive Order to Reduce Pharmaceutical Prices

In a move to revitalize the Nigerian health sector, President Bola Tinubu has signed an executive order aimed at increasing local production of healthcare products. The order introduces zero tariffs, excise duties, and Value-Added Tax (VAT) on imported pharmaceutical inputs, machinery, equipment, and raw materials.

According to the coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, the order is crucial to the success of the initiative for unlocking the healthcare value chain (PVAC_NG), approved in October 2023. The order aims to reduce production costs, enhance local manufacturers’ competitiveness, and encourage local production of healthcare products such as pharmaceuticals, diagnostics, devices, biologicals, and medical textiles.

Specified items include Active Pharmaceutical Ingredients (APIs), excipients, essential raw materials required for manufacturing crucial health products like drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits. The order also provides for establishing market shaping mechanisms like framework contracts and volume guarantees to encourage local manufacturers.

The order mandates collaboration among relevant ministries and 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), to ensure swift implementation and reduce regulatory bottlenecks.

The waivers and exemptions will be effective for two years, providing market-based incentives to encourage medical industrialization, reduce costs of medical products through import substitution, create and retain economic value, and enable job creation in the healthcare value chain.

This executive order is a significant step towards improving Nigeria’s healthcare sector, making healthcare products more affordable and accessible to Nigerians.

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