Former lawmaker Senator Shehu Sani has expressed his concerns regarding the recent executive order signed by President Bola Tinubu in June, which aimed to suspend import duties and value-added tax (VAT) on essential medical supplies imported into Nigeria.
Despite the policy's intention to reduce the high cost of locally producing pharmaceuticals, diagnostics, and medical devices, Sani noted that "the removal of the customs duties on imported drugs has not resulted in a drop in prices of drugs at the pharmaceutical shops."
The executive order was part of the Initiative for Unlocking the Health Care Value Chain, approved by President Tinubu in October 2023. The initiative introduced zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials to lower production costs and enhance the competitiveness of local manufacturers. However, Sani's observations suggest that these measures have yet to translate into tangible benefits for consumers.
Minister of Health and Social Welfare, Muhammad Ali Pate, had previously highlighted the significance of the order, stating, "The order is pivotal to the success of the Initiative for Unlocking the Health Care Value Chain." Despite this optimism, the anticipated reduction in drug prices remains unrealized, prompting Sani to voice his disappointment publicly.
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