• Thursday, July 25, 2024
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Tinubu signs executive order to increase local production healthcare products

Tinubu approves N150,000 grant for each MSMEs clinics participants

President Bola Tinubu, on Friday, signed an executive order targeted at increasing local production of healthcare products.

These products include pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc, amongst others.

Ali Pate, the Coording Minister of Health and Social Welfare, in a statement, shared on his X handle disclosed this.

The Order, according to the minister, directs collaboration between the Ministers of Health, Finance, Industry, Trade and Investment, to develop a Harmonized Implementation Framework, expediting regulatory approvals and reducing bottlenecks.

To ensure swift implementation, with special waivers and exemptions effective for two years, the agencies involved include the Nigeria Customs Service, the National Agency for Food and Drug Administration Control, Standard Organisation of Nigeria, and Federal Inland Revenue Service.

He said the Order is pivotal to the success of the Initiative for Unlocking the Health Care Value Chain, which the President approved in October 2023.

According to him, “the Order introduces zero tariffs, excise duties and VAT on specified machinery, equipment and raw materials, aiming to reduce production costs and enhance our local manufacturers’ competitiveness.”

He listest the specified items to include Active Pharmaceutical Ingredients, excipients, other essential raw materials required for manufacturing of crucial health products such as drugs, syringes and needles, Long-lasting Insecticidal Nets and Rapid Diagnostic Kits, and many more.

“The Order also provides for establishing market shaping mechanisms such as framework contracts and volume guarantees, to encourage local manufacturers,” he added.

The implication of this order is pivot towards market-based incentives to encourage medical industrialisation, reducing costs of medical products through import substitution over time, creating and retaining economic value and enabling job creation in the healthcare value chain.

Pate commended Tinubu for his courage and commitment to ensure Nigeria is put back on the path to prosperity.

“We also thank all who contributed to the ideas that culminated in the consensus that resulted in this key milestone,” he said.