The Ministry of Health and Social Welfare has finalized the Executive Order Harmonized Implementation Framework, eliminating Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
Dr. Tunji Alausa, the Minister of State for Health and Social Welfare, revealed this in an interview with the News Agency of Nigeria (NAN) in Abuja. He emphasized that the policy, which has been cleared for gazetting, will strengthen local pharmaceutical manufacturers and lower the cost of essential healthcare products.
“This new framework enables the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service to implement the tax exemptions, allowing local producers to fully benefit from the relief measures introduced by President Bola Ahmed Tinubu,” said Alausa.
He further explained that the initiative is expected to reduce the financial burden on Nigerians who depend on critical healthcare supplies, advancing the government’s commitment to improving healthcare access and affordability.
“This is a significant step towards creating a healthier, more self-reliant nation. By supporting local manufacturers, we are unlocking the healthcare value chain and making quality healthcare more accessible for all,” he added.
The gazetting of this framework represents a key accomplishment in the Ministry’s 4-point agenda, which prioritizes local production to strengthen the nation’s healthcare sector.
Copies of the framework will be distributed to relevant agencies for immediate action. This effort is seen as a pivotal move to stabilize the pharmaceutical market and ensure the availability of essential medications at more affordable prices.
Nigerian citizens have long faced high costs for medications and medical devices, limiting access to healthcare. In response, the government has introduced several reforms aimed at supporting local pharmaceutical production and alleviating financial burdens on consumers.
The zero VAT policy on pharmaceutical products is part of a larger strategy to revitalize healthcare, ensuring that Nigerians have access to affordable and high-quality health supplies.
