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Tinubu Signs Executive Order To Remove Tariffs, Duties On Imported Pharmaceutical Inputs

Posted by Samuel on Sat 29th Jun, 2024 - tori.ng

Pate said the Attorney General of the Federation, Lateef Fagbemi (SAN), is expected to take the next steps towards codifying the new order.

 Bola Tinubu

Nigeria's number one man, President Bola Tinubu has signed an Executive Order to eliminate tariffs and taxes on imported pharmaceutical ingredients, with the aim to increase local production of healthcare products.

The Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, disclosed this via his X account on Friday.

Pate said the Attorney General of the Federation, Lateef Fagbemi (SAN), is expected to take the next steps towards codifying the new order.

According to the minister, the 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.

He noted that the "order introduces zero tariffs, excise duties and Value Added Tax on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness."

“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.

“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,” he wrote.

He pointed out that agencies including the Nigeria Customs Service, NAFDAC, SON and FIRS would 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.

“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. unveils business opportunities for youth corp members,” he added.

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