In a bid to revitalize its cratering health sector, Nigeria is taking significant steps to increase the local production of pharmaceuticals and diagnostic devices, including needles, syringes, and medical textiles.
This transformative initiative, contained in an executive order recently signed by President Tinubu, comes on the heels of the Healthcare Value Chain Initiative, which promises zero tariffs and taxes on specified machinery and raw materials.
Among the specified items exempted from tax are Active Pharmaceutical Ingredients (APIs) and raw materials needed for manufacturing essential medical supplies.
The order mandates the establishment of market-shaping mechanisms, such as framework contracts and volume guarantees, to encourage local manufacturers. It also calls for collaboration between the Ministry of Health, the Ministry of Finance, and the Ministry of Industry, Trade, and Investment to develop a harmonized implementation framework that would expedite regulatory approvals and minimise bottlenecks.
The Nigeria Customs Service, the National Agency for Food, Drug Administration and Control (NAFDAC), the Standards Organization of Nigeria (SON), and the Federal Inland Revenue Service (FIRS) will be responsible for the swift implementation of these measures, while special waivers and exemptions will be in effect for two years.
The minister of health, Muhammad Ali Pate, emphasized that the Executive Order offered market incentives to promote medical industrialization. This approach, according to him, would reduce the costs of medical products through import substitution over time, thereby creating economic value and enabling job creation within the healthcare value chain.
Meanwhile, stakeholders maintain that this order will reduce production costs and enhance the competitiveness of local manufacturers.
Nigeria is taking significant steps to revitalize its health sector by boosting local production of pharmaceuticals and diagnostic devices. President Tinubu has signed an executive order promoting the Healthcare Value Chain Initiative, which includes zero tariffs and taxes on machinery and raw materials such as Active Pharmaceutical Ingredients (APIs).
The order mandates market-shaping mechanisms like framework contracts and volume guarantees to encourage local manufacturing, with the Ministries of Health, Finance, and Industry collaborating to expedite regulatory processes.
Agencies like Nigeria Customs Service, NAFDAC, SON, and FIRS will ensure swift implementation of these measures, and special waivers will be in effect for two years. This initiative aims to reduce the costs of medical products through import substitution, enhance local manufacturers' competitiveness, create economic value, and generate jobs within the healthcare sector.
Stakeholders believe this executive order will significantly reduce production costs, thereby enhancing local manufacturers' competitiveness.
