President Bola Tinubu signs an executive order on local production of healthcare products
Eko Hot Blog reports that President Bola Tinubu has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.).
Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, disclosed the development in a statement Friday evening.
He described the executive order as “a transformative move to revitalize the Nigerian health sector”.
“The Minister of Justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, is to now take the next steps towards codifying the new Order,” the minister said.
Pate said the executive order is pivotal to the success of the Initiative for Unlocking the Health Care Value Chain, which was approved in October 2023 by the President.
The order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.
Coordinating Minister, Federal Ministry of Health and Social Welfare, Professor Muhammad Ali Pate
Specified items include Active Pharmaceutical Ingredients (#APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, among others.
The order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers.
Furthermore, it mandates collaboration between the Ministers of Health, Finance, and Industry, Trade and Investment to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks.
Agencies including the Nigeria Customs Service, National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), and Federal Inland Revenue Service (FIRS) will ensure swift implementation, with special waivers and exemptions effective for two years.
“The implication of this order is pivot towards market-based incentives to encourage medical industrialization, reducing costs of medical products through import substitution over time, creating and retaining economic value and enabling job creation in the healthcare value chain,” the health minister stated.
“We thank Mr President for his courage and commitment to ensure Nigeria is put back on the path to prosperity.
“We also thank all who contributed to the ideas that culminated in the consensus that resulted in this key milestone.”
Click here to watch our video of the week:
The Association of Local Governments of Nigeria (ALGON) has condemned the suspension of 18 local…
Ekohotblog reports that Senator Mukhail Adetokunbo Abiru, FCA, representing Lagos East Senatorial District, has extended…
Napoli midfielder Scott McTominay says he has no regrets about his decision to leave Manchester…