JUST IN; Drug Prices May Drop As FG Implements Zero VAT, Duties

Date: 27-03-2025 1:00 pm (3 weeks ago) | Author: onuigbo felicia
- at 27-03-2025 01:00 PM (3 weeks ago)
(f)

Experts predict that drug prices may decrease following the implementation of the federal government’s executive order eliminating VAT and excise duties on pharmaceutical products and medical devices.

The Nigeria Customs Service yesterday said it had commenced the implementation of Value Added Tax (VAT) and import duty exemption on raw materials essential for the production of pharmaceutical products.

The National Public Relations Officer of the Nigerian Customs Service (NCS), Assistant Comptroller of Customs, Abdullahi Maiwada, in a statement on Wednesday, said the decision was in line with the presidential order to boost local production of healthcare products

President Bola Tinubu had, in June last year, signed the Executive Order to increase local production of pharmaceutical, diagnostics and medical devices.
The NCS’ spokesman said: “Critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax (VAT) for a period of two years.”

The statement added that the exemption covers Active Pharmaceutical Ingredients (APIs), excipients and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents and packaging materials.

Maiwada said to ensure that these fiscal incentives are fully utilised, eligibility is limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number (TIN). 

Experts said the implementation of the Executive Order would address the skyrocketing cost of medicines.

A former National Secretary of the Pharmaceutical Society of Nigeria (PSN), Pharm. Iyiola Gbolagade, in a chat with our correspondent, described the implementation of the Executive Order as commendable, saying it would lead to reduction of prices some locally manufactured medicines like antibiotics and antimalarial drugs.

A former chairman of the Association of Community Pharmacists of Nigeria (ACPN) FCT chapter, Pharmacist Eneojo Made, said the implementation of Zero VAT and exercise duties on Active Pharmaceutical Ingredients (APIs), which are used to produce medicines, would boost the production of essential medicines for various categories of diseases thereby enhancing availability and access to them in the country.

A former National Publicity Secretary of the Association of Community Pharmacists of Nigeria (ACPN), Kenneth Edeh Ujah, said, “When the cost of production of medicines at various stages is lower, of course, it is going to have that direct impact on the eventual cost of the medicine when people visit the pharmacy to buy their drugs.”

Also, Prof Cyril Odianose Usifoh, the immediate past president, Pharmaceutical Society of Nigeria (PSN), said the potential for success in the order was boosted because specified items include Active Pharmaceutical Ingredients (APIs), excipients, essential raw materials required for manufacturing of crucial products, including drugs, long lasting insecticidal bed nets, rapid diagnostic kits and others.

The Federal Ministry of Health and Social Welfare had, in a statement, said the Executive Order is a significant milestone, as it opens the door for local pharmaceutical and medical device manufacturers to begin fully benefiting from the relief measures outlined by President Bola Ahmed Tinubu in the Executive Order.

Posted: at 27-03-2025 01:00 PM (3 weeks ago) | Addicted Hero
- fineboy77 at 27-03-2025 01:02 PM (3 weeks ago)
Online (m)
 Roll Eyes Roll Eyes Roll Eyes

Posted: at 27-03-2025 01:02 PM (3 weeks ago) | Addicted Hero
Reply
- gogoman at 27-03-2025 10:20 PM (3 weeks ago)
Online (m)
wrong move!!! so u just keep depending solely on that dirty oil money  Roll Eyes Roll Eyes Roll Eyes
Posted: at 27-03-2025 10:20 PM (3 weeks ago) | Grande Master
Reply

fire TRENDING GISTS fire

TODAY'S TOP
  1. Nollywood Mourns As Rising Actor Evans, Cinematographer Nnunu Die After Suspected Poisoning

  2. VeryDarkMan Defies Ultimatum From Arewa Youths, Fires Back Over Sultan Of Sokoto Remarks (Video

  3. Davido Splurges Over ₦300 Million on New Diamond Chain in London (Video)

  4. Tragedy in Akure: Couple, One Other Killed In Fatal Tricycle-Truck Crash

  5. Fresh Abductions Rock Enugu As Priestess, Worshippers Abducted On Way To River For Ritual

  6. 28-Yr-Old Woman Arrested With Cocaine Hidden In Her Vag!na During Moyale-Nairobi Drug Bust

  7. "Wike Is A Bulldozer" – Ayo Fayose Cautions PDP Governors Over Wike's Influence

  8. Three NDLEA Officers Shot During Drug Raid In Abuja, Hospitalised After Armed Ambush

  9. Bloody Clash Between Rival Bandit Groups Leaves Several Dead in Kaduna

  10. Joy After The Storm: Nigerian Businessman Welcomes Baby Girl After 13 Years of Waiting

  11. NiDCOM Rescues Three Nigerian Teenagers From Sex Trafficking Ring In Ghana

  12. Nollywood Actor, Yul Edochie Declares Divine Mandate To Lead Africans Back To Their Roots

  13. Edo Governor Okpebholo Vows Fo Enforce Death Penalty For Kidnappers

  14. Katsina Police Nab Two Suspected Drug Dealers, Seize Tramadol Worth ₦3.5 Million


THIS WEEK
  1. Reactions As Cubana Chief Priest Spotted With Tinubu's Cap At Obi Cubana's 50th Birthday

  2. Pretty Mike Causes Stir At Obi Cubana’s 50th Bash With ‘Accident Victim’ Parade (Video)

  3. Media Personality Claims Activist Verydarkman Was Barred From Obi Cubana’s Birthday Party (Vid)

  4. 'I Didn’t Attack Seyi Tinubu With My Song, I Only Replied Him' – Eedris Abdulkareem

  5. U.S. Judge Rules CIA Can Withhold Records On Nigerian President Bola Tinubu

  6. VIDEO; "Burkina Faso Is 10x Better Than Nigeria" — Lady Shares ‘Japa’ Experience

  7. See Reactions After Pastor David Ibiyeomie Opines That Jesus Never Liked Poor People

  8. Atiku Urges President Tinubu To Declare State Of Emergency On Nigeria

  9. "Tinubu’s France Trip Not For Medical Treatment"– Presidential Aide, Daniel Bwala

  10. NDLEA Nabs 27-Yr-Old Suspect, Aliyu Ibrahim In Kano With 25,600 Tramadol Pills, 20 ATM Cards


TOP MEMBERS:

Featured Discussions