Nigeria’s Federal Government Implements Zero-tax Policy on Pharmaceuticals

The Federal Government of Nigeria has commenced the implementation of zero VAT and excise duties on pharmaceutical products and medical devices to reduce drug prices across the country. This move follows the gazetting of an Executive Order, which allows the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) to apply these tax exemptions. Local pharmaceutical manufacturers are also expected to benefit from these relief measures as they can now purchase medical equipment at reduced prices. The initiative is part of the Ministry of Health’s agenda to strengthen the healthcare value chain, addressing rising drug prices caused by the exit of major pharmaceutical companies like GSK and Sanofi and the Naira’s depreciation. The Ministry stated that it expects the order to lead to a significant reduction in the prices of essential medical supplies, aligning with the government’s commitment to easing healthcare costs for Nigerians.

SOURCE: NAIRAMETRICS