Nigeria: Zero VAT on Pharmaceuticals and Medical Devices

On the 9 October 2024, the Nigerian Federal Ministry of Health and Social Welfare has finalized an Executive Order implementing zero Value Added Tax (VAT) and excise duties on pharmaceuticals and medical devices, marking a pivotal moment for the country’s healthcare industry.

This policy was endorsed by President Bola Ahmed Tinubu, is designed to reduce costs for essential medical products, making healthcare more affordable for Nigerians. The Executive Order supports the Ministry’s agenda to unlock the healthcare value chain, fostering local manufacturing, and building a self-reliant health sector.

The gazetted Harmonized Implementation Framework will guide relevant agencies like the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service in executing these changes, which are expected to lower both the financial and logistical burdens on the country’s health system.

This initiative is a significant victory for Nigeria’s health sector, underlining the government’s commitment to accessible healthcare and support for local industries.

Source: Federal Ministry of Health and Social Welfare