Federal Government Finalizes Executive Order on Zero VAT for Pharmaceutical Products and Medical Devices

The Federal Government has finalized the Executive Order eliminating Value-Added Tax (VAT) and excise duties on pharmaceutical products and medical devices.

According to a press statement by Alaba Balogun, Head of Information and Public Relations at the Federal Ministry of Health and Social Welfare, this move aims to:

– Increase local production of healthcare products

– Reduce costs through import substitution

– Encourage medical industrialization

– Create jobs in the healthcare value chain

Signed by President Bola Tinubu on June 28, 2024, the order provides market-based incentives and establishes framework contracts and volume guarantees to support local manufacturers.

The finalized Executive Order has been cleared for gazetting, paving the way for implementation by relevant authorities.

This significant development is expected to make essential health supplies more affordable and accessible to Nigerians.