Stakeholders in Nigeria’s pharmaceutical industry have expressed concern that the recently introduced two-year import duty and VAT waiver on pharmaceutical raw materials may fall short of expectations unless the Federal Government addresses deeper challenges facing the sector.
In separate interviews with The PUNCH, experts acknowledged the waiver as a positive step but warned that without significant improvements in infrastructure, finance access, regulatory reforms, and human capital, the impact may be limited.
The Chairman of the Lagos Chamber of Commerce and Industry (LCCI) Medical Group, Dr. Niyi Osamiluyi, praised the waiver as commendable but warned that chronic issues such as unreliable power supply, poor transport networks, and inefficient ports could erase any progress the waiver brings.
“A holistic approach that includes infrastructure development, financial incentives, and regulatory reforms is essential to achieve comprehensive healthcare coverage,” Osamiluyi said. “Production costs remain high due to electricity issues and weak logistics. Manufacturers also struggle to get affordable financing to expand and maintain quality.”
He further noted the impact of bureaucracy and talent shortages, saying: “Long and complex regulatory processes slow down product approvals, discourage investment, and delay access to essential medicines. Also, the sector needs more skilled personnel in manufacturing and quality assurance.”
The waiver, announced by the Nigeria Customs Service on March 26, 2025, covers active pharmaceutical ingredients, excipients, diagnostic kits, packaging materials, and insecticidal nets. A total of 87 pharmaceutical firms approved by the Federal Ministry of Health and Social Welfare are eligible to benefit—provided they have valid Tax Identification Numbers.
The initiative comes at a time of rising concern about the local manufacturing environment. Several multinational drug firms, including GlaxoSmithKline and Sanofi, have exited Nigeria in recent years due to harsh economic and operating conditions.
Osamiluyi described the timing of the waiver as critical for supporting local firms and rebuilding drug manufacturing capacity. He also welcomed the Federal Government’s plans to establish the Empower Academy Nigeria in partnership with Empower Swiss, Geneva, to address the sector’s talent deficit. The goal is to increase local pharmaceutical manufacturing to at least 70% by 2030.
Former President of the Pharmaceutical Society of Nigeria, Olumide Akintayo, echoed Osamiluyi’s views. While welcoming the Customs waiver, he stressed that the true test of policy success lies in practical implementation. “We’ll only know the waiver is working when local manufacturers actually feel the relief during procurement,” he said.
Akintayo called on the Federal Government to go beyond surface-level policies by setting up a presidential committee focused exclusively on reforming the pharmaceutical sector.
“The pharmaceutical sector is a trillion-dollar global market. It must be treated as a major industry in its own right. A dedicated reform committee could tackle long-standing challenges like the National Drug Distribution Guidelines, which remain unimplemented,” he said.
He also criticised the lack of inclusive leadership in the health sector, stating that critical decisions are often made without adequate representation of pharmacists. This, he warned, poses a risk to long-term pharmaceutical policy outcomes.
Akintayo questioned whether the current policy trajectory could deliver on its most important goals: “Are we really bringing down drug prices? Are we supporting the local manufacturing of active pharmaceutical ingredients (APIs)? That’s the bottom line,” he said.
