The National Agency for Food and Drug Administration and Control has lauded President Bola Tinubu’s Executive Order granting special waivers on pharmaceutical inputs, APIs, excipients, and other essential raw materials.
The Director General, NAFDAC, Prof. Mojisola Adeyeye, in a statement she signed on Saturday, said that the Order which would exempt specified pharmaceutical machinery, equipment, goods, and accessories from tariffs and excise duties, would “set the stage for a sustainable and high-quality healthcare system for all Nigerians.”
She said the initiative, as a part of the Nigeria Health Sector Renewal Investment Initiative, “addresses longstanding challenges and aims to improve health outcomes for Nigerians.”
She added that the President’s Order would transform Nigeria’s healthcare sector by increasing local production of healthcare products, reducing costs of healthcare equipment and consumables, and promoting local investment.
The EO, as published by the Office of the Coordinating Minister of Health and Social Welfare, has the following provisions:
Zero Tariffs and Excise Duties: Exempting specified pharmaceutical machinery, equipment, goods, and accessories from tariffs and excise duties to reduce production costs and make healthcare products more affordable.
Special Waivers on Pharmaceutical Inputs: APIs, excipients, and other essential raw materials, including those for Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, will benefit from zero tariffs, excise duties, and VAT, lowering the price of essential medicines and medical supplies.
Market Shaping: Establishing framework contracts and volume guarantees to stabilise the local manufacturing market.
Regulatory Harmonisation and Expedited Approvals: Developing a Harmonised Implementation Framework to guide regulatory agencies in streamlining approval processes.
Implementation and Compliance: Agencies like the Nigeria Customs Service, NAFDAC, SON, and FIRS are mandated to ensure swift implementation. The waivers and exemptions are valid for two years from the effective date.
Also, the Order, it was noted, would address key issues, including:
Reducing the High Cost of Medicines: By lowering tariffs and providing special waivers, the EO aims to reduce the prohibitive costs of medicines and other pharmaceutical products, making healthcare more affordable for Nigerians.
Boosting Local Industry: Encouraging local manufacturing will create jobs, stimulate economic growth, and reduce dependence on imports, ensuring a reliable supply of essential healthcare products.
Enhancing Quality and Innovation: Regulatory harmonisation and market shaping will drive innovation and quality improvement in the local healthcare industry.
Strengthening Health Systems: By addressing underinvestment and regulatory challenges, the EO will strengthen Nigeria’s health system, improving service delivery and health outcomes, and enhancing resilience to future health crises.
Lauding the initiative, the NAFDAC DG said in the statement that the President’s EO “underscores his administration’s commitment to transforming Nigeria’s health sector.”
“It aligns with the broader objectives of the NHSRII and the Presidential Initiative on Healthcare Value Chain (PVAC), approved in October 2023. By addressing core challenges and providing a clear path for improvement, this EO sets the stage for a sustainable and high-quality healthcare system for all Nigerians,” Adeyeye added.
She lauded the Coordinating Minister of Health and Social Welfare, Prof. Mohammed Ali Pate, and the Coordinating Minister of State for Health and Social Welfare, Dr. Tunji Alausa, who, according to him, “put the interest of the 200 million plus Nigerians before their own interest.”
