FG to Crash Prices of Medicines, Remove VAT and Import Duties on Pharmaceutical and Medical Items
- The Nigerian government is taking steps to crash medicines and medical equipment
- The government has finished the implementation guideline for an executive order removing taxes and import duties on pharmaceutical products
- The minister of state for health disclosed that the step ensures the FIRS and Nigeria Customs implement zero VAT on medical products
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian government has finalised the implementation framework for an executive order eliminating VAT and import duties on pharmaceutical materials and medical devices.
The minister of state for health and social welfare, Tunji Alausa, announced this on Wednesday, October 9, 2024, stating that the harmonised framework has been cleared for gazetting.
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The FIRS and Customs to implement zero VAT
He disclosed that the step ensures that the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) can move on to implement zero VAT and import duties on pharmaceutical products and medical devices.
According to Alausa, this step opens the door for local pharmaceutical and medical device manufacturers to begin benefiting from the measures proposed by the president in the executive order.
This is expected to reduce the cost of essential pharmaceutical products and medical consumables in Nigeria, easing the financial pain of citizens.
The minister disclosed that gazetting the implementation framework represents the third pillar of the Ministry of Health’s four-point agenda, which focuses on opening up the healthcare value chain.
According to Alausa, the ministry hopes to promote a healthier, more self-reliant country by creating an environment that supports local manufacturers.
Nigerians face challenges accessing medical products
Stakeholders in the health sector have expected the move since Tinubu introduced a policy this year to boost local production of essential medical supplies.
After a turbulent year of high drug prices, the executive order has been hailed as a critical step in showing the government’s interest in easing health companies' operational costs.
Business Day reports that patients face limited access to vital drugs, which harm their health and well-being.
The order introduces zero tariffs and taxes on specified medical supplies, equipment and raw materials.
Affected items include active pharmaceutical ingredients (APIs), expedients, raw syringes and needles materials, long-lasting insecticide nets, and rapid diagnostic kits.
Nigerians have been facing the rising cost of medicines since pharmaceutical giant GSK exited the country after 52 years.
Other manufacturers, such as Sanofi, also left the country, soaring the cost of medicines by over 1,000%.
Pharmacists give new prices of essential drugs
Legit.ng earlier reported that the cost of essential drugs at pharmacies nationwide continues to rise, placing additional strain on Nigerians' access to healthcare.
Checks showed that the prices for over-the-counter and prescription medications at pharmacies nationwide have surged by as much as 300% since GlaxoSmithKline decided to leave Nigeria one year ago.
Additionally, the depreciation of the naira against the US dollar in the foreign exchange market has made imports more expensive.
Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.
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