The Federal Government says Nigeria’s local pharmaceutical manufacturers have recorded a 12 per cent drop in production costs following the implementation of President Bola Tinubu’s executive order on the industry.
Minister of State for Health, Dr Iziaq Salako, disclosed this at the BusinessDay Health Conference in Abuja on Thursday, noting that the reduction is expected to translate into lower prices for locally produced medicines and medical supplies.
President Tinubu, in June 2024, signed an executive order removing tariffs, excise duties, and value-added tax (VAT) on specialised machinery, equipment, and raw materials used in pharmaceutical manufacturing. The policy aims to boost domestic production of essential healthcare products such as syringes, biologicals, medical textiles, and rapid diagnostic tests, thereby improving access and affordability.
Salako said 87 local manufacturers are currently benefitting from the incentives, which cover nearly 1,000 harmonised system codes.
“Feedback from our local manufacturers suggests that the presidential order has resulted in about 12 per cent reduction in production costs,” he stated.
According to the minister, the order—part of the broader Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC)—is revitalising local manufacturing and driving the emergence of pharmaceutical and diagnostic hubs in Nigeria.
He revealed that, within the past year, two Nigerian-made products have secured World Health Organisation (WHO) qualification, marking the first such milestone in West and Central Africa. Additionally, a rapid diagnostic test (RDT) manufacturing facility was recently commissioned in Ogun State—the second of its kind in sub-Saharan Africa—while another local manufacturer is set to open Africa’s first contextual active pharmaceutical ingredient (API) factory.
Salako described PVAC as a catalyst for health security, economic growth, and job creation, achieved through cross-institutional coordination and value chain transformation.
“The presidential order works in tandem with PVAC by directly incentivising local manufacturing of medicines and other commodities, such as syringes and rapid diagnostic tests,” he added.
