The Healthcare Federation of Nigeria (HFN) has commended President Bola Tinubu and the Federal Government for approving a two-year duty and VAT waiver on pharmaceutical raw materials.
The federation described the decision as a major boost to Nigeria’s healthcare sector, saying it would help cut down the cost of essential drugs, support local drug manufacturers, and improve access to healthcare services.
President of HFN, Njide Ndili, in a statement on Sunday, said the policy followed extensive stakeholder engagement and advocacy by the group and others in the private health sector.
“The successful implementation of this waiver is a direct result of continuous engagement and multi-sector collaboration,” Ndili said.
“HFN has been at the forefront of advocating for these reforms, and we are pleased to see our efforts, alongside other key stakeholders, contribute to reducing the cost of essential medical products and strengthening local manufacturing capabilities.”
READ ALSO:Nigeria emerging as leading destination for medical tourism, says HFN
The waiver applies to key materials used in pharmaceutical production, including Active Pharmaceutical Ingredients (APIs), excipients, diagnostic kits, reagents, and medical packaging materials.
“The duty and VAT exemption covers Active Pharmaceutical Ingredients (APIs), excipients, diagnostic kits, reagents, medical packaging materials, and other essential inputs needed for pharmaceutical production. By alleviating financial burdens on manufacturers, this policy will help lower the cost of medicines, enhance access to quality healthcare products, and boost the competitiveness of Nigeria’s healthcare industry.”
HFN called on the Nigeria Customs Service to issue circulars to all zonal offices and border posts to ensure smooth and full implementation of the new directive without unnecessary delays.
“HFN urges the Nigeria Customs Service to help ensure the full implementation of the waiver by issuing circulars to all Zonal Offices and Area Commands nationwide across airports, seaports, and land borders,” the statement read.
“This step is crucial to ensuring that all importers and manufacturers benefit from these waivers without bureaucratic hindrances.”
The federation also appreciated government officials who played key roles in making the waiver a reality. These include the Minister of Finance, Wale Edun; Minister of State for Finance, Doris Anite; Coordinating Minister of Health, Muhammad Ali Pate; Minister of State for Health, Iziaq Salako; and the Comptroller-General of Customs, Bashir Adeniyi.
READ MORE:HFN, PVAC partner to boost healthcare innovation
HFN revealed that conversations around this waiver started in 2022 when it submitted policy papers to the Federal Ministry of Finance and other stakeholders. It said the process later involved NIROPHARM, NSIA, the Federal Ministries of Health and Finance, and the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC).
The group added that the policy would create jobs, increase investment in the health sector, support export of local products under AfCFTA, and reduce Nigeria’s dependency on imported medicines.
It also welcomed the lifting of the export ban on previously imported items, saying it would ease the exchange of outdated medical equipment for newer technologies.
“HFN remains committed to public-private sector collaboration and will continue to engage with government agencies and industry stakeholders to monitor the impact of these waivers,” the group added.
