October 09, (THEWILL) – The Federal government says it has commenced the implementation of the Presidential Executive Order directing zero Value Added Tax (VAT) on pharmaceutical products and medical devices.
THEWILL reports that President Bola Tinubu had in June 2024, signed an Executive Order to strengthen Nigeria’s health system by exempting pharmaceutical machinery, equipment, goods, and accessories from tariffs and excise duties, reducing production costs and making healthcare products more affordable.
In a statement signed by the Head of Information in the Federal Ministry of Health, Alaba. R. Balogun, noted that the Executive Order on harmonised implementation framework has been cleared to be gazetted.
The statement reads: “The Ministry of Health and Social Welfare is pleased to announce the finalisation of the Executive Order Harmonized Implementation Framework, which has now been cleared for gazetting.
“This critical step ensures that the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices.
“This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by His Excellency, President Bola Ahmed Tinubu, in the Executive Order.
“With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables. This development aligns with the Ministry’s unwavering commitment to reducing both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies.
“Furthermore, the gazetting of the Harmonized Implementation Framework represents the realisation of the third pillar of the Ministry’s 4-point agenda, which focuses on unlocking the healthcare value chain. By creating an environment that supports local manufacturers, we are fostering a healthier, more self-reliant nation, and ensuring that quality healthcare becomes more accessible and affordable for all.
“The gazetted copies of the Harmonized Implementation Framework will be distributed to the relevant government agencies, including FIRS and Customs for immediate action.
“Undoubtedly, today is another great day for our country and a huge win for the health sector. We are grateful to President BAT, for his continued commitment to improving the healthcare sector and supporting our local industries.”
