The Nigerian Government announced on Wednesday that it has finalized the Executive Order to implement zero Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
Spokesman for the Federal Ministry of Health and Social Welfare Alaba Balogun, made this known in a statement, indicating that the harmonized implementation framework is now ready for gazetting.
“This critical step enables the Federal Inland Revenue Service and the Nigeria Customs Service to move forward with the implementation of zero VAT and excise duties on these essential items,” Balogun stated. He emphasized that this initiative marks a significant milestone for local pharmaceutical and medical device manufacturers, allowing them to fully benefit from the relief measures introduced by President Bola Ahmed Tinubu.
The implementation of this Executive Order is expected to lead to a notable reduction in the prices of essential pharmaceuticals and medical consumables, aligning with the Ministry’s commitment to alleviate the financial burden faced by millions of Nigerians reliant on these critical health supplies.
Balogun further noted that the gazetting of the framework represents the realization of the third pillar of the Ministry’s four-point agenda aimed at unlocking the healthcare value chain.
This announcement follows four months after Coordinating Minister of Health and Social Welfare, Muhammad Pate, revealed that President Tinubu had signed an executive order to enhance local production of healthcare products, including pharmaceuticals, diagnostics, and medical devices.
