The Federal Ministry of Health and Social Welfare has finalized the Executive Order’s Harmonized Implementation Framework, which abolishes Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
This was disclosed by Dr. Tunji Alausa, the Minister of State for Health and Social Welfare, during an interview in Abuja on Wednesday.
Alausa explained that this development, now cleared for gazetting, is designed to enhance the operational capacity of local pharmaceutical manufacturers and reduce the prices of essential healthcare supplies.
“The new framework empowers the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement these tax exemptions, ensuring that local producers fully benefit from the relief measures initiated by President Bola Ahmed Tinubu,” Alausa stated.
He added that the initiative is expected to ease the financial burden on millions of Nigerians who rely on critical health supplies, aligning with the government’s commitment to improving healthcare access and affordability.
“This is a critical milestone that will foster 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,” the minister said.
The gazetting of the Harmonized Implementation Framework marks a significant achievement in the Ministry’s four-point agenda, which emphasizes the importance of local production in strengthening Nigeria’s health sector. Alausa disclosed that copies of the framework would be disseminated to relevant agencies for prompt action, signaling a concerted effort to improve healthcare delivery across the country.
The initiative is widely regarded as a positive step toward stabilizing the pharmaceutical market, ensuring that essential medications and medical devices become more affordable. The minister further noted that the measure would significantly improve overall health outcomes for Nigerians.
According to the News Agency of Nigeria (NAN), the Nigerian healthcare system has faced persistent challenges, including the high cost of essential medications and medical devices, which has affected healthcare access for millions of citizens. Recognizing the need for reform, the government has prioritized initiatives aimed at supporting local pharmaceutical manufacturing and easing the financial burden on consumers.
In recent years, the Federal Government, under President Tinubu, has introduced various measures to revitalize the healthcare sector, including the Executive Order on zero VAT for pharmaceutical products. This order forms part of a broader strategy to enhance healthcare delivery by fostering local production capabilities and ensuring that Nigerians have access to affordable and high-quality healthcare supplies.
The implementation of the Harmonized Implementation Framework represents a key step in the government’s commitment to achieving these goals. By eliminating VAT and excise duties, the government aims to stimulate the local pharmaceutical industry, reduce the prices of essential drugs, and improve health outcomes across the country.
This move is expected to create a more sustainable healthcare system and encourage the growth of local manufacturers, contributing to a stronger and more resilient health sector in Nigeria.
