The Federal Government of Nigeria has finalized the Executive Order Harmonized Implementation Framework. This landmark development abolishes Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.
According to Dr. Tunji Alausa, Minister of State for Health and Social Welfare, this move is expected to enhance the operational capacity of local pharmaceutical manufacturers. “The new framework allows the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to implement these tax exemptions, paving the way for local producers to fully benefit from the relief measures initiated by President Bola Ahmed Tinubu,” he said.
Dr. Alausa emphasized that this initiative would alleviate the financial burden on millions of Nigerians reliant on critical health supplies.
“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,” he stated.
He noted that the gazetting of the Harmonised Implementation Framework marked a key achievement in the Ministry’s 4-point agenda, which stresses the importance of local production in strengthening the nation’s health sector. “Copies of the framework will be disseminated to relevant agencies for prompt action, signalling a concerted effort to improve healthcare delivery across Nigeria,” Dr. Alausa disclosed.
The elimination of VAT and excise duties is expected to stimulate the local pharmaceutical industry, reduce prices of essential drugs, and improve overall health outcomes for Nigerians. This is expected to stabilize the pharmaceutical market, ensuring essential medications and medical devices are available at lower costs.
