The Federal Government has finalized an Executive Order to eliminate Value-Added Tax (VAT) and excise duties on pharmaceuticals and medical devices. This significant announcement was made in a press release on Wednesday by Alaba Balogun, Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare.

On June 28, 2024, Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, revealed via his X handle that President Bola Tinubu had signed the Executive Order aimed at enhancing local production of healthcare products, including pharmaceuticals, diagnostics, and medical devices such as syringes and biological materials.

The statement confirmed that the harmonized implementation framework of the Executive Order is now ready for gazetting.

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“This crucial move enables the Federal Inland Revenue Service and the Nigeria Customs Service to implement zero VAT and excise duties on pharmaceutical products and medical devices,” it noted.

This milestone opens up opportunities for local manufacturers of pharmaceuticals and medical devices, allowing them to fully benefit from the relief measures outlined by President Bola Ahmed Tinubu in the Executive Order.

With the execution of this initiative, there is a strong expectation for a significant reduction in the prices of essential pharmaceutical products and medical supplies.

The announcement reflects the Ministry’s dedication to alleviating the physical and financial burdens faced by millions of Nigerians who rely on vital health supplies. Furthermore, the gazetting of the harmonized framework represents a key aspect of the Ministry’s four-point agenda, focusing on unlocking the healthcare value chain.