The Federal Government has finalized an Executive Order to implement zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
This was announced in a press release on Wednesday, signed by Alaba Balogun, Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare.
On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, revealed on his X (formerly Twitter) handle that President Bola Tinubu had signed an executive order aimed at boosting local production of healthcare products. This includes pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, and medical textiles.
The statement highlighted that the finalization of the harmonized implementation framework for the Executive Order has now been approved for gazetting. This ensures that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can begin implementing the VAT and excise duty exemptions on these products.
“This is a significant milestone, as it paves the way for local pharmaceutical and medical device manufacturers to fully benefit from the relief measures introduced by President Bola Ahmed Tinubu through this Executive Order,” the statement read.
The Ministry anticipates that this move will lead to a significant drop in the prices of essential pharmaceutical products and medical consumables. It aligns with the Ministry’s commitment to reducing the financial burden on millions of Nigerians who rely on these critical health supplies.
Additionally, the gazetting of the harmonized framework represents the realization of the third pillar in the Ministry’s four-point agenda, which focuses on unlocking the healthcare value chain in Nigeria.
