President Tinubu signs an Executive Order introducing zero tariffs on healthcare equipment and raw materials to boost local production. The initiative aims to enhance Nigeria's healthcare value chain, lower costs, create jobs, and reduce import reliance. NAFDAC's efforts and expanded health insurance are expected to further improve healthcare affordability.
President Bola Ahmed Tinubu of Nigeria has taken a bold step to boost local production of essential healthcare products by signing an Executive Order that introduces zero tariffs, excise duties, and VAT on specialized machinery, equipment, and pharmaceutical raw materials. This initiative, announced by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, aims to enhance Nigeria's healthcare value chain significantly.
The Executive Order, part of the Initiative for Unlocking the Healthcare Value Chain approved in October 2023, focuses on pharmaceuticals, diagnostics, medical devices, biologicals, and medical textiles. It covers Active Pharmaceutical Ingredients (APIs), excipients, and materials for producing drugs, syringes, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
The order mandates the establishment of market-shaping mechanisms like framework contracts and volume guarantees to support local manufacturers. It also calls for collaboration among various ministries to develop a Harmonized Implementation Framework, aiming to expedite regulatory approvals and reduce bureaucratic bottlenecks.
This move is expected to lower healthcare costs, create jobs, and retain economic value within Nigeria by fostering local production and reducing reliance on imports. The special waivers and exemptions will be effective for two years, with agencies like the Nigeria Customs Service, NAFDAC, SON Nigeria, and FIRS Nigeria tasked with ensuring swift implementation
