FG To Commence Implementation Of Zero VAT For Pharmaceutical Products

The Minister of State for Health and Social Welfare, Dr. Tunji Alausa.

The Ministry of Health and Social Welfare has finalised the Executive Order Harmonised Implementation Framework that abolishes value added tax (VAT) and excise duties on pharmaceutical products and medical devices.

The Minister of State for Health and Social Welfare, Dr. Tunji Alausa revealed this during an interview with Science Nigeria on Wednesday in Abuja. He explained that the initiative, which has been approved for gazetting, is expected to boost the operational capacity of local pharmaceutical manufacturers while reducing 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. This will allow local producers to benefit fully from the relief measures introduced by President Bola Tinubu,” Alausa said.

The minister emphasised that the initiative would lessen the financial burden on millions of Nigerians who depend on critical health supplies, aligning with the government’s commitment to improving healthcare access and affordability.

“This is a significant milestone that will lead to a healthier and more self-reliant nation. By supporting local manufacturers, we are unlocking the healthcare value chain and making quality healthcare more accessible to all Nigerians,” he stated.

Alausa highlighted that the gazetting of the Harmonized Implementation Framework is a major achievement under the ministry’s four-point agenda, stressing the importance of local production to strengthen Nigeria’s health sector. “Copies of the framework will be distributed to relevant agencies for immediate action, signaling a concerted effort to improve healthcare delivery across the country,” he added.

The initiative is widely regarded as a positive step toward stabilising the pharmaceutical market and ensuring that essential medications and medical devices become more affordable, improving the overall health outcomes for the Nigerian populace.

Science Nigeria reports that Nigeria’s healthcare system has long struggled with high costs for essential medications and medical devices, which have limited access to healthcare for millions of citizens. Recognizing the need for reform, the government has prioritised initiatives to support local pharmaceutical manufacturing and reduce the financial burden on consumers.

In recent years, under President Tinubu’s administration, various measures have been introduced to revitalise the healthcare sector, including the Executive Order on zero VAT for pharmaceutical products. This order is part of a broader strategy to enhance healthcare delivery by strengthening local production capabilities, ensuring that Nigerians have access to affordable and high-quality health supplies.

The Executive Order aligns with the Ministry of Health and Social Welfare’s four-point agenda, which focuses on improving healthcare access, promoting local manufacturing and fortifying the healthcare value chain.

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. This initiative is expected to create a more sustainable healthcare system while encouraging the growth of local manufacturers.