FG Plans to Eliminate VAT on Pharmaceuticals

The Federal Government has announced that it has finalized the Executive Order to implement zero Value-Added Tax and excise duties on pharmaceutical products and medical devices.

Alaba Balogun, the spokesman for the Federal Ministry of Health and Social Welfare, shared this information in a statement released on Wednesday, October 9.

The statement indicated that the government has completed the harmonized implementation framework for the Executive Order and is now prepared to gazette it.

“This critical step ensures that the Federal Inland Revenue Service and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices. This is a significant milestone, as it opens the door for our local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by His Excellency, President Bola Ahmed Tinubu, in the Executive Order.

With the implementation of this Executive Order, we anticipate a notable reduction in the prices of essential pharmaceutical products and medical consumables.

This development aligns with the Ministry’s unwavering commitment to reducing both the physical and financial pain faced by millions of Nigerians who depend on these critical health supplies.”

This announcement comes roughly four months after Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, revealed that President Bola Tinubu had signed an executive order aimed at boosting local production of healthcare products.

This includes pharmaceuticals, diagnostics, devices like needles and syringes, biologicals, medical textiles, and more.