Nigeria’s President has directed the Federal Inland Revenue Service (FIRS) and the country’s Customs Service to implement the zero VAT and excise duties on pharmaceutical products and medical devices.
As confirmed by the Ministry of Health and Social Welfare, the Executive Order paves the way for a harmonised implementation framework and is now cleared for gazzeting.
This will most likely be a boost to local pharmaceutical and medical device manufacturers.
The confirmation was contained in a statement issued by the Head of Information & Public Relations of the Ministry, Alaba Balogun.
According to the statement, the Ministry is optimistic that the implementation of the Executive Order will result in reduction of prices of pharmaceuticals and medical consumables. “It aligns with the Ministry’s dedication to easing the financial burden on millions of Nigerians reliant on these critical health supplies”, the statement read.
Also, the gazetting of the Harmonized Implementation Framework marks the completion of the third pillar in the Ministry’s 4-point agenda, which aims to unlock the healthcare value chain and by providing an enabling environment for local manufacturers, the Ministry hopes to build a more self-reliant nation with affordable, high-quality healthcare.
The Ministry said the finalized framework will soon be distributed to relevant agencies, including FIRS and Customs, for immediate action.
