The Centre for the Promotion of Private Enterprise (CPPE) has endorsed the Federal Government’s recent executive order, which removes import duties on pharmaceutical products. This move, according to CPPE, will significantly reduce the cost of drugs, create jobs, and positively impact the well-being of Nigerian citizens.
In a statement made available to Nairametrics, Dr. Muda Yusuf, Director/CEO of CPPE, commended the Federal Government for the executive order, which eliminates import duties, VAT, and excise duty on pharmaceutical raw materials, intermediate products, medical diagnostic equipment, and machinery.
“These fiscal policy measures will boost domestic production of pharmaceutical products, improve access to healthcare, and positively impact the well-being of citizens. It will also revitalize our pharmaceutical industries and create more jobs,” said Dr. Yusuf.
The executive order, signed by President Bola Ahmed Tinubu, is part of a broader strategy to enhance the local pharmaceutical industry’s capacity and ensure affordable healthcare for all Nigerians. The order mandates the removal of various fiscal barriers that have historically hindered the growth of the pharmaceutical sector.
“This initiative is a game-changer for our healthcare system and the economy at large,” Dr. Yusuf added. “By reducing the cost of essential medical supplies, we are not only making healthcare more accessible but also stimulating economic activities within the pharmaceutical industry.”
The policy is expected to provide a significant boost to local pharmaceutical manufacturers by reducing their production costs and enhancing their competitiveness. This will likely lead to increased investment in the sector, the establishment of new production facilities, and the expansion of existing ones.
Industry experts believe that the removal of these duties will also encourage more foreign direct investment into Nigeria’s pharmaceutical sector. With reduced costs of production inputs, local manufacturers can now produce high-quality pharmaceutical products at more competitive prices, making Nigeria a more attractive destination for pharmaceutical investments.
The executive order is anticipated to generate numerous job opportunities across the pharmaceutical value chain, from manufacturing to distribution. This will not only help in reducing the unemployment rate but also contribute to the overall economic growth of the country.
Dr. Yusuf emphasized the importance of implementing robust regulatory mechanisms to ensure that the benefits of this policy are fully realized. “Effective regulation and monitoring are crucial to ensure that the cost reductions are passed on to consumers and that the quality of pharmaceutical products remains high,” he said.
The Centre for the Promotion of Private Enterprise remains optimistic that this policy will lead to a more vibrant pharmaceutical industry, improved healthcare access, and a healthier population.
