The Federal Government announced that it has finalized an Executive Order to implement zero Value-Added Tax, VAT, and excise duties on pharmaceutical products and medical devices.
In a statement on Wednesday, October 9, the spokesperson for the Federal Ministry of Health and Social Welfare, Alaba Balogun, confirmed that the harmonized framework for the Executive Order’s implementation has been cleared for gazetting.
“This critical step ensures that the Federal Inland Revenue Service and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices,” he said.
“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by His Excellency, 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 both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies.”
The statement noted that the gazetting of the harmonized implementation framework marks the achievement of the third pillar in the Ministry’s four-point agenda, aimed at unlocking the healthcare value chain.
This milestone comes roughly four months after the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, revealed that President Bola Tinubu had signed an executive order to boost local production of healthcare products. These include pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, medical textiles, and more.
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