The Federal Government has finalised the Executive Order on the implementation of zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
This was disclosed in a press statement on Wednesday signed by the Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, Alaba Balogun.
On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate announced on his X handle that, in a transformative move to revitalise the Nigerian health sector, President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, and among others.
The ministry said this would ensure that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can implement zero VAT and excise duties on pharmaceutical products and medical devices.
The ministry’s head of information and public relations, Alaba Balogun, disclosed this in a statement on Wednesday in Abuja.
He said the order also provides for establishing market-shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.
He also added that the order is towards market-based incentives to encourage medical industrialisation, reducing costs of medical products through import substitution over time, creating and retaining economic value, and enabling job creation in the healthcare value chain.
He described the development as a significant milestone, as it opens the door for the local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by President Bola Ahmed Tinubu in the Executive Order.
“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables. This development aligns with the Ministry’s unwavering commitment to reducing the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies,” he added.
Balogun further stated that the gazetting of the Harmonized Implementation Framework represents the realisation of the third pillar of the Ministry’s 4-point agenda, which focuses on unlocking the healthcare value chain.
“By creating an environment that supports local manufacturers, we are fostering a healthier, more self-reliant nation and ensuring that quality healthcare becomes more accessible and affordable for all.
The Federal Government has finalised the Executive Order on the implementation of zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices. This was disclosed in a press statement on Wednesday signed by the Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, Alaba Balogun.
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On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, announced on his X handle that, in a transformative move to revitalise the Nigerian health sector, President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textiles, and among others.
The ministry said this would ensure that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can implement zero VAT and excise duties on pharmaceutical products and medical devices.
Balogun emphasized that the order also provides for establishing market-shaping mechanisms such as framework contracts and volume guarantees to encourage local manufacturers.
He described the development as a significant milestone, as it opens the door for local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by President Bola Ahmed Tinubu in the Executive Order.
“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables. This development aligns with the Ministry’s unwavering commitment to reducing the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies,” he added.
Balogun further stated that the gazetting of the Harmonized Implementation Framework represents the realization of the third pillar of the Ministry’s 4-point agenda, which focuses on unlocking the healthcare value chain.
“By creating an environment that supports local manufacturers, we are fostering a healthier, more self-reliant nation and ensuring that quality healthcare becomes more accessible and affordable for all,” he said.
“The gazetted copies of the harmonised implementation framework will be distributed to the relevant government agencies, including FIRS and Customs for immediate action. Undoubtedly, today is another great day for our country and a huge win for the health sector. We are grateful to President BAT for his continued commitment to improving the healthcare sector and supporting our local industries,” it concluded.
