Tinubu signs executive order to boost local production of healthcare products

• Published On: 28 June 2024 at 20:32

President Bola Tinubu has signed an executive order aimed at increasing local manufacture of healthcare products.

Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare, made the announcement on his X account on Friday.

Pate stated that the Attorney General of the Federation, Lateef Fagbemi (SAN), is likely to take the following steps in codifying the new decree.

According to the minister, the directive is critical to the success of the project to unlock the health care value chain, which was approved by the President in October 2023.

He stated that the directive establishes zero tariffs, excise charges, and Value Added Tax on specific machinery, equipment, and raw materials with the goal of lowering manufacturing costs and increasing the competitiveness of our local producers.

"Specified items include Active Pharmaceutical Ingredients (APIs), excipients, and other key raw materials used for the production of critical health products such as medications, syringes and needles, Long-lasting Insecticidal Nets (LLINs), and Rapid Diagnostic Kits, among others.

"The Order also establishes market shaping instruments, such as framework contracts and volume guarantees, to attract domestic manufacturing.


"The Order 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," according to him.

He stated that authorities such as the Nigeria Customs Service, NAFDAC, SON, and FIRS will ensure prompt implementation, with specific waivers and exemptions valid for two years.

"The implication of this directive is a shift toward market-based incentives to support medical industrialization, lowering the costs of medical products through import substitution over time, creating and keeping economic value, and facilitating job creation in the healthcare value chain.

"We appreciate Mr. President's boldness and dedication to putting Nigeria back on the path to prosperity. We also want to thank everyone who provided suggestions that culminated in the consensus that resulted in this important milestone. "Unveils business opportunities for youth corp members," he continued.