Stakeholders Excited Over Executive Order On Local Drug Production

Pharmacists and other stakeholders in the health sector have applauded President Bola Tinubu’s signing of an executive order aimed at increasing local production of pharmaceuticals, diagnostics, and other healthcare products.

The minister of health and social welfare, Prof. Mohammed Ali Pate, announced via his X (Twitter) handle at the weekend said the president had signed the Executive Order.

He said the Order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials.

The minister said this will help reduce production costs and enhance local manufacturers’ competitiveness.

RELATED: Tinubu Signs Executive Order To Crash Cost Of Drugs With Zero Tariffs, Special Waivers

He said, “In a transformative move to revitalise the Nigerian health sector, His Excellency President Bola Ahmed Tinubu signed an Executive Order to increase local production of healthcare products.

(pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textiles, etc.).

“The minister of justice and Attorney General of the Federation, Prince Lateef Olasunkanmi Fagbemi SAN, is to take the next steps towards codifying the new Order.

“Specified items include Active Pharmaceutical Ingredients (#APIs), excipients, other essential raw materials required for manufacturing of crucial health products like drugs, syringes and needles, Long-lasting Insecticidal Nets (#LLINs) and Rapid Diagnostic Kits, among others.”

Reacting to the development, the director-general of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Moji Adeyeye, said encouraging local manufacturing will create jobs, stimulate economic growth, and reduce dependence on imports.

She said the Order aligns with the broader objectives of the NHSRII and the Presidential Initiative on Healthcare Value Chain (PVAC), approved in October 2023.

“By addressing core challenges and providing a clear path for improvement, this Executive Order sets the stage for a sustainable and high-quality healthcare system for all Nigerians”, Adeyeye added.

In the same vein, the director-general of the Nigeria Natural Medicine Development Agency (NNMDA), Prof. Martins Emeje, said that viewing it from the point of commerce, the Order will reduce the cost of drugs because tariffs are part of what leads to a rise in the cost of drugs.

Emeje told LEADERSHIP that if tariffs, excise duties and VAT are removed, the President has removed much of the burden from the point of commerce.

“This is an Executive Order that is targeted at reducing the pains that the populace are going through regarding access or affordability of imported medicines. This will reduce the cost of drugs or health products that will be manufactured by the pharmaceutical companies who were importing finished products.

“It will encourage local production because those who haven’t been importing API because of the cost of tariffs will now be able to import them. People who could not bring pharmaceutical equipment to the country because of tariffs will now be able to do that,” he said.

The NNMDA boss, however, expressed worry over implementing the Order while tasking those involved in importing these products on patriotism.

He said, “From that perspective, it should decrease the cost of these products but we all know that the implementation on the part of those directly involved may be a problem because it is not the president that is going to carry out the importation. Are those doing importation going to reduce the price of drugs and health products because they are not paying tariffs anymore?

“I hope it will not be an opportunity for them to exploit the system because they may now start complaining that even though tariffs have been removed, the cost of diesel has not been reduced. This is where attitude and patriotism come into play,” Prof. Emeje added.

Speaking further, Emeje said the Order is not a research and development Executive Order, saying that “If we have to develop our own innovative products, it can only come through research and development and that can only happen through our research institutions, our universities and the Ministries of Education and Science and Technology.”

Also, former president of the Pharmaceutical Society of Nigeria (PSN), Mazi Samuel Ohuabunwa, said the signing of the Executive Order is a commendable development because the removal of tariffs, excise duties and VAT on drugs and Pharmaceuticals will have an effect.

Ohuabunwa told LEADERSHIP that despite the inflation caused by the value of the Naira plus other internal considerations, the cost of energy, this will bring some relief.

“I pray that it will be done speedily so that the citizens of Nigeria, whose government has taken this action for their interest, will begin to see the benefits. It will have some beneficial effect,” he added.