Tinubu Signs Executive Order To Remove Tariffs, Duties On Imported Pharmaceutical Inputs

President Bola Tinubu has issued an Executive Order aimed at eliminating tariffs and duties on imported pharmaceutical raw materials, a move designed to bolster local production of essential healthcare goods. The decision was disclosed by Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare, emphasizing its role in facilitating the healthcare value chain, as approved in October 2023.The Executive Order signifies a pivotal step in reducing production costs and enhancing the competitiveness of local manufacturers by exempting specified items such as Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials from tariffs, excise duties, and Value Added Tax (VAT). These materials are crucial for manufacturing health products like drugs, syringes, needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits.Furthermore, the Order mandates collaboration between the Ministries of Health, Finance, and Industry, Trade, and Investment to develop a cohesive implementation framework. This framework aims to streamline regulatory approvals and mitigate operational hurdles, thereby fostering an environment conducive to local manufacturing.To expedite implementation, agencies including the Nigeria Customs Service, NAFDAC, SON, and FIRS have been directed to ensure swift execution of the Order, which includes waivers and exemptions effective for a period of two years.The overarching goal of this initiative is to incentivize medical industrialization through market-based mechanisms, gradually reducing dependency on imports and promoting import substitution. By doing so, the government aims to create economic value, generate employment opportunities within the healthcare sector, and ultimately propel Nigeria towards sustainable prosperity.Pate expressed gratitude to President Tinubu for his commitment to revitalizing Nigeria’s economic landscape and acknowledged the collaborative efforts that culminated in this milestone. He highlighted the potential business opportunities this initiative could unlock, particularly for young entrepreneurs and stakeholders within the healthcare industry.This Executive Order has been met with optimism for its potential to catalyze growth and innovation in Nigeria’s healthcare sector, while also raising expectations for increased local production and improved accessibility to essential medical supplies. As stakeholders monitor its implementation, the focus remains on ensuring transparency, accountability, and equitable distribution of benefits across the healthcare value chain.