President Bola Tinubu’s recent Executive Order aimed at enhancing local production of healthcare products has received commendation from pharmacists and the National Agency for Food and Drug Administration and Control (NAFDAC). The announcement, made on Friday by Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, marks a significant step towards revitalizing Nigeria’s health sector.
The Executive Order targets increased local production of pharmaceuticals, diagnostics, medical devices, biologicals, and medical textiles. Minister of Justice and Attorney General of the Federation, Prince Lateef Fagbemi, is set to codify this new directive.
Prof. Pate emphasized the pivotal role of this order in the Presidential Initiative for Unlocking the Healthcare Value Chain, approved in October 2023. The order introduces zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials, aiming to reduce production costs and enhance local manufacturers’ competitiveness. This includes Active Pharmaceutical Ingredients (APIs), excipients, and other essential raw materials needed for producing crucial health products like drugs, syringes, and Rapid Diagnostic Kits.
The order also introduces market-shaping mechanisms such as framework contracts and volume guarantees to encourage local manufacturers. It 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.
“Agencies including the Nigeria Customs Service, NAFDAC, Standards Organisation of Nigeria, and the Federal Inland Revenue Service will ensure swift implementation, with special waivers and exemptions effective for two years,” Pate stated.
The initiative aims to reduce medical product costs through import substitution, create and retain economic value, and enable job creation in the healthcare value chain. Prof. Pate expressed gratitude to President Tinubu for his commitment to Nigeria’s prosperity and to all contributors to this milestone.
The National Chairman of the Association of Community Pharmacists of Nigeria, Adewale Oladigbolu, commended the Executive Order, noting that it would stabilize drug prices over time. Stephen Esumobi, Director of Enforcement at the Pharmacy Council of Nigeria, echoed this sentiment, stating that the order would enhance the capacity utilization of local pharmaceutical industries, leading to increased employment opportunities and lower medicine costs.
Former President of the Pharmaceutical Society of Nigeria, Ahmed Yakasai, described the order as a step in the right direction. He emphasized the need for resilience, innovation, and collaboration to build a thriving local pharmaceutical manufacturing ecosystem that serves Nigeria and beyond. Yakasai also highlighted the importance of addressing infrastructural challenges, streamlining bureaucratic processes, and fostering a conducive business environment.
NAFDAC Director General, Prof. Mojisola Adeyeye, noted that the order is crucial for the success of the Nigeria Health Sector Renewal Investment Initiative, which aims to address longstanding challenges and improve health outcomes for Nigerians.
This Executive Order marks a transformative move towards a more self-sufficient and robust healthcare sector in Nigeria, with the potential to significantly impact the local economy and public health.
