FG to scrap VAT on Pharmaceuticals

The Federal Government has finalised the Executive Order on the implementation of zero Value-Added Tax and excise duties on pharmaceutical products and medical devices

This was disclosed in a press statement on Wednesday signed by the Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, Alaba Balogun.

On June 28, 2024, the Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate announced on his X handle that, in a transformative move to revitalise the Nigerian health sector, President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, and among others.

He said the order also provides for establishing market-shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.

The minister added that the order is towards market-based incentives to encourage medical industrialisation, reducing costs of medical products through import substitution over time, creating and retaining economic value, and enabling job creation in the healthcare value chain.

The statement noted that the finalisation of the Executive Order harmonised implementation framework has now been cleared for gazetting.

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