FG finalizes executive order on zero VAT for pharmaceutical manufacturers

By Kunle Sanni

The Ministry of Health and Social Welfare has announced the completion of the Executive Order Harmonized Implementation Framework, which will allow the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement zero VAT and excise duties on pharmaceutical products and medical devices. This move is part of President Bola Tinubu’s efforts to provide relief to the nation’s health sector.

In a statement released on Wednesday by Alaba Balogun, Head of Information and Public Relations at the ministry, the development is described as a significant win for the Nigerian healthcare system, aiming to boost local pharmaceutical and medical device manufacturers.

Balogun expressed appreciation to President Tinubu for his continued efforts to enhance healthcare and promote local industry growth. The Executive Order is expected to support the production of essential medicines and medical supplies within Nigeria, reducing dependence on imports.

The Ministry also highlighted that this initiative would result in a significant decrease in the prices of critical pharmaceutical products and medical consumables. It aligns with the Ministry’s commitment to easing both the physical and financial challenges faced by Nigerians in accessing healthcare.

The gazetting of the framework fulfills the Ministry’s third pillar of its 4-point agenda, which focuses on unlocking the healthcare value chain.

By easing financial burdens on local manufacturers, the government aims to build a more self-reliant healthcare sector, making quality healthcare more affordable and accessible for all Nigerians.

Copies of the gazetted framework will be distributed to FIRS, Customs, and other relevant government agencies for immediate enforcement.