Tinubu Signs Executive Order Introducing Zero Tariffs, Duties, VAT to Boost Nigerian Healthcare Manufacturing

Tinubu Signs Executive Order Introducing Zero Tariffs, Duties, VAT to Boost Nigerian Healthcare Manufacturing

Oredola Adeola

 

In a groundbreaking move set to transform the Nigerian health sector, President Bola Ahmed Tinubu has signed an Executive Order eliminating tariffs, excise duties, and value-added tax (VAT) on key healthcare imports for the next two years.

This announcement, confirmed by Health Minister Professor Mohammed Pate, aims to bolster local production of essential healthcare products, including pharmaceuticals, diagnostics, and medical devices.

Justice Minister and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, will spearhead the legal codification of this transformative order.

This initiative is a cornerstone of the "Unlocking the Health Care Value Chain" project, approved by President Tinubu in October 2023. By removing financial barriers, the Order aims to slash production costs and boost the competitiveness of Nigerian manufacturers. 

Critical items covered include Active Pharmaceutical Ingredients (APIs), excipients, and other raw materials essential for producing vital health products like drugs, syringes, and Rapid Diagnostic Kits.

The Order also introduces market-shaping mechanisms such as framework contracts and volume guarantees to support local manufacturers. 

It mandated a collaborative effort between the Ministries of Health, Finance, and Industry, Trade, and Investment to develop a Harmonized Implementation Framework, ensuring expedited regulatory approvals and reducing bottlenecks.

Agencies including the Nigeria Customs Service, NAFDAC, SON, and FIRS will play crucial roles in the swift implementation of this order, which promises special waivers and exemptions for two years.

This strategic pivot towards market-based incentives aims to drive medical industrialization, reduce the costs of medical products through import substitution, and create job opportunities within the healthcare value chain.

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