Tinubu Signs Executive Order Eliminating Taxes on Imported Pharmaceutical Inputs

President Bola Tinubu has signed an executive order eliminating tariffs, excise duties, and value-added tax (VAT) on imported pharmaceutical inputs. This move is aimed at revitalizing Nigeria’s health sector and boosting the production of healthcare products within the country.

Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare, announced the executive order on Friday. “In a transformative move to revitalize the Nigerian health sector, President Bola Ahmed Tinubu has signed an Executive Order aiming to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices like needles and syringes, biologicals, and medical textiles,” Pate stated.

The Minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi, is tasked with codifying the new order.

The executive order is seen as crucial to the success of the Presidential Value Chain Initiative (PVAC_NG), approved by Tinubu in October 2023. It introduces zero tariffs, excise duties, and VAT on machinery, equipment, and raw materials essential for manufacturing critical health products, such as Active Pharmaceutical Ingredients (APIs), excipients, drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.

The order also sets up market-shaping mechanisms like framework contracts and volume guarantees to support local manufacturers. It mandates collaboration among the ministries of health, finance, industry, trade, and investment to develop a harmonized implementation framework, streamlining regulatory approvals and reducing bottlenecks.

Agencies including the Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS) will ensure swift implementation, with special waivers and exemptions in effect for two years.

“This executive order marks a pivot towards market-based incentives to encourage medical industrialization, reducing costs of medical products through import substitution over time, creating and retaining economic value, and enabling job creation in the healthcare value chain,” Pate explained.

Pate thanked President Tinubu for his bold commitment to Nigeria’s prosperity and acknowledged the contributions of those who helped shape this significant policy milestone.