Date of Publication: October 11, 2024
Introduction
On October 11 2024, the Federal Government of Nigeria issued the Executive Order on “Increase Local Production of Healthcare Products”. The Order aims to boost Nigeria’s pharmaceutical and healthcare manufacturing capacity, reduce over-dependence on imported medical products, and promote national medicine security. It provides fiscal incentives, regulatory support, and government procurement guarantees to encourage local production and investment in the healthcare sector. This initiative demonstrates the government’s commitment to strengthening the local manufacturing base, improving access to affordable, quality healthcare products, and positioning Nigeria as a hub for regional health-industry growth.
Key Provisions and Highlights
- Tariff and Duty Exemptions: Pharmaceutical machinery, and accessories are exempted from import duties and tariffs to reduce production costs.
- VAT and Import Duty Waivers: Active Pharmaceutical Ingredients (APIs), excipients, and other raw materials essential to healthcare manufacturing are exempted from import duty and VAT.
- Regulatory Alignment and Fast-Track Approvals: Relevant agencies are mandated to simplify and harmonize approval processes, enabling quicker registration and market entry for locally manufactured health products.
- Duration of Incentives: The fiscal incentives and exemptions will apply for an initial two-year period, subject to review based on impact and performance.
- Scope and Eligibility: The provisions apply to recognized healthcare manufacturers that meet national regulatory and quality standards.
Objective
The Executive Order seeks to promote medicine security, industrial self-reliance, and the growth of Nigeria’s healthcare manufacturing ecosystem by incentivizing production, reducing import costs, and fostering regulatory efficiency.
To support the implementation of the Presidential Executive Order on Increasing Local Production of Healthcare Products, two detailed lists are now available for public access. These include the List of Exempted Materials and the List of Exempted Pharmaceutical Manufacturers eligible for zero tariffs, VAT waivers, and related incentives under the Order. Stakeholders and interested parties are encouraged to review the documents below:
Downloads and Resources
Official Gazette Containing the Executive Order
List of Exempted Manufacturers and their TIN
List of Exempted Raw Materials and Items
