By Isa Aminu Hashim 


On 30th June 2024, his Excellency President Bola Ahmed Tinubu, GCFR, signed an executive order that introduces zero tariffs, exercise duties and VAT on Pharmaceutical inputs, diagnostics and healthcare devices  such as needles, syringes, biologicals medical textiles e.t.c. The Coordinating Minister of Health & Social Welfare, Dr. Muhammad Ali Pate announced.

“This is a transformative move to revitalize the Nigerian health sector” he said; then further added that the order aims to reduce production cost and enhance our local manufacturer’s competitiveness.

From the order, diagnostics and healthcare devices are self explanatory but what are pharmaceutical inputs and how can they affect manufacturing in Nigeria’s pharmaceutical industry?

Pharmaceutical inputs are raw materials and ingredients used to manufacture drugs and medicines.They are classified into Active Pharmaceutical Ingredients (APIs) and Excipients. APIs are the chemical compounds that produce therapeutic effects while excipients are ingredients that enhance specific character of drugs like stability and patient acceptance. Common examples are flavoring agents to mask taste, binders and coating agents.

According to United Nations Industrial Development Organization’s report (UNIDO,2010) on the pharmaceutical sector profile of Nigeria, all active pharmaceutical ingredients used in Nigeria are imported mainly from India and China; companies need to make a careful forward planning for the import of APIs because of lengthy delays (>3 months) at seaport due to clearance, customs and NAFDAC formalities.

The report also shows that pharmaceutical grade starch(excipients) are imported primarily from China but there are some local companies that produce industrial grade starch.

This shows that removal of tariffs for their import is a step in the right direction as it will lead to decrease in expenditure of local manufacturing companies and subsequently the prices of these drugs.

Reacting to the announcement, the president of the Pharmaceutical Society of Nigeria (PSN) Prof. Cyril Odianose Usifoh hailed the move as a critical step towards revitalizing Nigeria’s healthcare sector. He further emphasized the importance of the Nigeria Health Sector Renewal Investment Initiative (NHSRII) noting that the order is not merely another government initiative but a genuine commitment to transforming the Health sector.

In the same vein, the Director-General of National Agency for Food, Drug and Administrative Control (NAFDAC) Prof. Mojisola Adeyeye said the executive order will improve service delivery and health outcomes and enhance resilience to future health crises. She further observed that the order will “ensure reliable supply of essential healthcare products, enhance quality and innovation, strengthen health systems by addressing under investment and regulatory challenges”.

Finally, while the positive intent of this executive order from the federal government  is clear, we will have to monitor the implementation of the order by affected agencies and as my friend Adamu Usman Adamu wrote on his WhatsApp status “ let’s see how some nigerians will try to stifle the implementation of this order”.