By Fatima Saka
The federal government has issued an Executive Order granting a Zero VAT exemption to Pharmaceutical Manufacturers of medical devices in Nigeria.
In response to this announcement, the Federal Ministry of Health and Social Welfare has finalized the Executive Order Harmonized Implementation Framework, which has now been approved for gazetting.
This development paves the way for the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices, as stated in a press release signed by Alaba R. Balogun, Head of Information and Public Relations on Wednesday.
According the press statement, this milestone signifies the commencement of local pharmaceutical and medical device manufacturers benefiting fully from the relief measures outlined in the Executive Order by His Excellency, President Bola Ahmed Tinubu.
“The implementation of this Executive Order is expected to lead to a significant reduction in the prices of essential pharmaceutical products and medical consumables. This initiative is in line with the Ministry’s steadfast dedication to alleviating the physical and financial burdens faced by millions of Nigerians reliant on these crucial health supplies.
“Moreover, the gazetting of the Harmonized Implementation Framework marks the achievement of the third pillar of the Ministry’s 4-point agenda, which is centered on unlocking the healthcare value chain. By fostering an environment conducive to supporting local manufacturers, we are cultivating a healthier, more self-sufficient nation, and ensuring that quality healthcare becomes more accessible and affordable for all.
“Copies of the gazetted Harmonized Implementation Framework will be disseminated to pertinent government agencies, including FIRS and Customs, for immediate action.
“Today undoubtedly stands as a remarkable day for our country and a significant victory for the health sector. We express our gratitude to President BAT for his unwavering commitment to enhancing the healthcare sector and bolstering our local industries.”
