The Nigerian government plans to implement zero VAT on pharmaceutical products, aiming to make healthcare more affordable and accessible to citizens by reducing costs on essential medicines.
On Wednesday, the Federal Government announced that it has finalized an Executive Order to enact zero Value-Added Tax and excise duties on pharmaceutical products and medical devices.
In a statement, Alaba Balogun, the spokesman for the Federal Ministry of Health and Social Welfare, announced that the harmonised implementation framework for the Executive Order has been approved for gazetting.
“This essential step allows the Federal Inland Revenue Service and the Nigeria Customs Service to move forward with implementing zero VAT and excise duties on pharmaceutical products and medical devices,” he stated.
This marks an important milestone, as it allows our local pharmaceutical and medical device manufacturers to start fully taking advantage of the relief measures presented by His Excellency, President Bola Ahmed Tinubu, in the Executive Order.
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By implementing this Executive Order, we expect a significant decrease in the prices of essential pharmaceutical products and medical supplies.
This development is in line with the Ministry’s firm dedication to alleviating both the physical and financial hardships experienced by millions of Nigerians who rely on these essential health supplies.
According to the statement, publishing the harmonised implementation framework signifies achieving the third pillar of the Ministry’s four-point agenda, which is centered on enhancing and expanding the healthcare value chain.
This occurs roughly four months following the announcement by Prof Muhammad Pate, the Coordinating Minister of Health and Social Welfare, that President Bola Tinubu had signed an executive order aimed at boosting domestic production of healthcare products. This includes pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, medical textiles, among others.
