Local pharmaceutical manufacturers in Nigeria have begun experiencing a significant decline—about 12%—in their production costs, following the rollout of the executive order signed by President Bola Tinubu, according to the Minister of State for Health, Iziaq Salako.
Speaking during the BusinessDay Health Conference held in Abuja on Thursday, Salako explained that the policy is expected to cause a comparable reduction in the prices of locally produced medical supplies.
President Tinubu had, in June 2024, signed an executive directive that removed tariffs, excise duties, and value-added tax (VAT) on specialised machinery, raw materials, and equipment used in pharmaceutical production. The objective of the directive is to bolster the local production of key healthcare commodities, including syringes, biological products, and medical textiles, thereby slashing production costs and making medicines more accessible.
Salako revealed that the policy has already had a tangible impact, with 87 domestic manufacturers benefiting from the incentive, which covers close to 1,000 Harmonised System (HS) codes.
“The feedback from our local manufacturers suggests that the implementation of the presidential order has resulted in about 12% reduction in the cost of production,” the minister said.
The initiative is part of a wider strategy under the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), which the government hopes will strengthen local production capabilities and lead to the formation of pharmaceutical and diagnostic clusters across the country.
Salako also announced a significant milestone: two Nigerian-made healthcare products recently achieved World Health Organization (WHO) prequalification status—an unprecedented feat in West and Central Africa. Furthermore, he noted that a rapid diagnostic test (RDT) manufacturing facility has been established in Ogun State, marking the second such plant tailored to the regional context in Sub-Saharan Africa.
“Yet another local manufacturer is set to commission Africa’s first contextual active pharmaceutical ingredient factory,” he added.
Salako emphasised that the comprehensive PVAC framework, along with the presidential directive, is playing a transformative role in overhauling Nigeria’s health sector by making local manufacturing a central pillar of reform.
“PVAC is catalysing health security, economic growth and employment by accelerating value chain transformation through cross-institutional coordination and collaboration,” he said.
He further stated that the presidential order complements this broader goal by offering direct support to the local production of essential items such as medications, syringes, and diagnostic kits.
