President Tinubu Signs Executive Order Removing Tariffs, Excise Duties, and VAT on Imported Pharmaceutical Inputs
President Bola Tinubu has signed an executive order to eliminate tariffs, excise duties, and value-added tax (VAT) on specific machinery, equipment, and raw materials. This move aims to reduce production costs and boost the competitiveness of local manufacturers.
The specified items include Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials required for manufacturing vital health products such as drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.
The order also introduces market-shaping mechanisms like framework contracts and volume guarantees to encourage local manufacturing.
Health Minister Ali Pate stated that the order mandates collaboration among the ministers of health, finance, and industry, trade, and investment to develop a harmonized implementation framework. This framework aims to expedite regulatory approvals and reduce bottlenecks.
Pate added that agencies including the Nigeria Customs Service (NCS), National Agency for Food and Drug Administration and Control (NAFDAC), Standards Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS) “will ensure swift implementation, with special waivers and exemptions effective for two years.”
