President Bola Tinubu has signed an Executive Order aimed at increasing the local production of healthcare products.
The Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, who disclosed this on Friday on his X handle, said the move is crucial for unlocking the healthcare value chain and enhancing the competitiveness of local manufacturers.
According to him , the order introduces zero tariffs, excise duties, and Value Added Tax on specified machinery, equipment, and raw materials, reducing production costs.
He wrote, “Specified items include Active Pharmaceutical Ingredients (APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, among others.
“The Order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.
“The Order mandates collaboration between the Ministers of Health Finance and Industry, Trade and Investment to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks.”
Pate highlighted the role of agencies like the Nigeria Customs Service, NAFDAC, SON, and FIRS in ensuring swift implementation with waivers and exemptions for two years. Stating that, “This order aims to create business opportunities, reduce import dependency, and stimulate job creation in the healthcare sector.”
