Tinubu's Bold Move, Zero Tariffs On Pharma To Boost Access and Affordability

 President Bola Ahmed Tinubu has taken steps to reduce drug prices in Nigeria by signing an Executive Order. This order eliminates tariffs, excise duties, and Value Added Tax on specialized machinery, equipment, and pharmaceutical raw materials, aiming to strengthen local production of vital healthcare products. The Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, announced this development on his official social media page.

He emphasized that the initiative targets pharmaceuticals, diagnostics, medical devices like needles and syringes, biologicals, and medical textiles. This strategic move aims to substantially elevate Nigeria's healthcare value chain. He stated that “In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu, GCFR, has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.). The Order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.”

This action follows a backdrop of escalating pharmaceutical prices in Nigeria amidst inflationary pressures and the departure of GlaxoSmithKline Consumer Nigeria Plc (GSK) from the market, as announced on August 3, 2023. Dr. Uche Ojinmah, the former President of the Nigerian Medical Association, highlighted in an interview with DAILY POST that the rising cost of pharmaceuticals has contributed to a decline in life expectancy among Nigerians.