The Nigerian government has finalized an Executive Order Harmonized Implementation Framework, abolishing Value Added Tax and Excise Duties on pharmaceutical products and medical devices.
Dr. Tunji Alausa, Minister of State for Health and Social Welfare, on Wednesday, confirmed the development, stating that the framework has been cleared for gazetting. This move aims to enhance local pharmaceutical manufacturers’ operational capacity and reduce prices of essential healthcare supplies.
The new framework instructs the Federal Inland Revenue Service and the Nigeria Customs Service to implement the tax exemptions. This initiative is expected to alleviate the financial burden on millions of Nigerians reliant on critical health supplies.
The Minister emphasized that supporting local manufacturers would unlock the healthcare value chain, making quality healthcare more accessible for all. The gazetting of the framework marks a key achievement in the Ministry’s 4-point agenda, stressing local production’s importance in strengthening the nation’s health sector.
The initiative is seen as a positive step toward stabilizing the pharmaceutical market, ensuring essential medications and medical devices are available at lower costs. This move will enhance overall health outcomes for the Nigerian populace.
Nigeria’s healthcare system has faced challenges, including high costs for essential medications and medical devices. The government has prioritized initiatives to support local pharmaceutical manufacturing and reduce the financial burden on consumers.
President Bola Ahmed Tinubu’s administration has introduced measures to revitalize the healthcare sector, including the Executive Order on zero VAT for pharmaceutical products. This order aims to enhance healthcare delivery by fostering local production capabilities.
The successful implementation of the Harmonised Implementation Framework marks a significant step in the government’s commitment to achieving its healthcare goals. By eliminating VAT and excise duties, the government aims to stimulate the local pharmaceutical industry, reduce prices, and improve health outcomes for Nigerians.
“The new framework allows the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement these tax exemptions, paving the way for local producers to fully benefit from the relief measures initiated by President Bola Ahmed Tinubu.
” This is a critical milestone that will foster a healthier, more self-reliant nation.
“By supporting local manufacturers, we are unlocking the healthcare value chain and making quality healthcare more accessible for all.
” Copies of the framework will be disseminated to relevant agencies for prompt action, signalling a concerted effort to improve healthcare delivery across Nigeria,” he disclosed.
