By Elizabeth Chimobi
The Federal Government has announced the completion of an Executive Order that offers zero VAT (Value Added Tax) and excise duties for pharmaceutical and medical device manufacturers in Nigeria.
The Ministry of Health and Social Welfare confirmed in a statement on its X handle on Tuesday that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service have been authorized to start implementing the new tax relief measures.
This new policy, approved by President Bola Ahmed Tinubu, aims to lower the cost of essential medicines and medical supplies for Nigerians by removing taxes on their production.
The Ministry expects this move to make healthcare products more affordable for millions of Nigerians who depend on them.
According to the Ministry, the official framework has now been finalized and will be distributed to relevant government agencies for immediate action.
The government hopes that this will not only reduce prices but also encourage more local production of pharmaceutical products, boosting the Nigerian healthcare sector and creating a self-sustaining environment for medical manufacturers.
The development is a part of the Ministry’s 4-point agenda, focusing on improving the health sector by supporting local manufacturers and making healthcare more accessible.
The policy framework is described as the third pillar of the Ministry’s plan to strengthen the healthcare value chain in the country.
Head of Information and Public Relations, Alaba R. Balogun, emphasized that this is a significant step forward for the health sector and a positive development for Nigerian citizens who have struggled with high healthcare costs.
The Ministry expressed its gratitude to President Tinubu for his commitment to improving the nation’s healthcare system and supporting local industries.
With the Executive Order now officially approved, the Ministry and other agencies will begin implementing the new measures, ensuring that the benefits reach the public as soon as possible.