May 10, 2025
Tinubu

In a major stride towards enhancing Nigeria’s healthcare sector, President Bola Tinubu signed an Executive Order on Friday to increase local production of healthcare products. This move aims to strengthen the nation’s healthcare value chain and reduce dependency on imported medical supplies.

The announcement was made by the Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, via his X account. The Attorney General of the Federation, Lateef Fagbemi (SAN), is expected to take the next steps in codifying the new order.

According to Minister Pate, this Executive Order is pivotal to the success of the initiative for unlocking the healthcare value chain, which was approved by the President in October 2023. The order introduces zero tariffs, excise duties, and Value Added Tax on specified machinery, equipment, and raw materials, thereby aiming to reduce production costs and enhance the competitiveness of local manufacturers.

“Specified items include Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials required for manufacturing crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits, among others,” stated Pate.

The order also establishes market-shaping mechanisms such as framework contracts and volume guarantees to encourage local manufacturers. It mandates collaboration between the Ministers of Health, Finance, and Industry, Trade and Investment to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks.

The Nigeria Customs Service, National Agency for Food and Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS) are tasked with ensuring swift implementation, with special waivers and exemptions effective for two years.

“The implication of this order is 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 added.

This Executive Order is expected to significantly impact Nigeria’s healthcare sector by fostering local production, reducing costs, and creating job opportunities. The President’s commitment to healthcare reform underscores his administration’s dedication to improving the nation’s healthcare infrastructure and overall economic prosperity.

“We thank Mr. President for his courage and commitment to ensuring Nigeria is put back on the path to prosperity. We also thank all who contributed to the ideas that culminated in the consensus that resulted in this key milestone,” Pate concluded.

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