FG to Implement Zero VAT on Pharmaceuticals and Medical Devices to Ease Healthcare Costs

The Federal Government has finalized the Executive Order to implement zero value-added tax (VAT) and excise duties on pharmaceutical products and medical devices, a move aimed at reducing healthcare costs for Nigerians.

Alaba Balogun, the spokesman for the Federal Ministry of Health and Social Welfare, confirmed the development on Wednesday, October 9, stating that the harmonized framework for implementation is now ready for gazetting.

 “This critical step ensures that the Federal Inland Revenue Service and the Nigeria Customs Service can proceed with the implementation of zero VAT and excise duties on pharmaceutical products and medical devices,” Balogun said.

He further explained that the initiative would lead to a significant reduction in prices of essential medical supplies, aligning with the ministry’s commitment to alleviate both financial and physical burdens faced by millions of Nigerians reliant on healthcare products.

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 The announcement follows four months after Coordinating Minister of Health, Prof. Muhammad Pate, revealed that President Bola Tinubu signed an Executive Order to promote local production of healthcare products.

Balogun noted that the successful implementation of the policy will benefit local manufacturers and strengthen the healthcare system, which is crucial for national health security.