Drug prices may drop as FG implements zero VAT, duties

The NCS’ spokesman said: “Critical raw materials essential for the production of pharmaceutical products will be exempted from import duty and Value Added Tax (VAT) for a period of two years.”

The statement added that the exemption covers Active Pharmaceutical Ingredients (APIs), excipients and other vital raw materials required for manufacturing essential medicines, Long-Lasting Insecticidal Nets (LLINs), Rapid Diagnostic Kits, reagents and packaging materials.

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Maiwada said to ensure that these fiscal incentives are fully utilised, eligibility is limited to manufacturers of pharmaceutical products recognised by the Federal Ministry of Health and Social Welfare, provided they possess a valid Tax Identification Number (TIN).

Experts speak

Experts said the implementation of the Executive Order would address the skyrocketing cost of medicines.

A former National Secretary of the Pharmaceutical Society of Nigeria (PSN), Pharm. Iyiola Gbolagade, in a chat with our correspondent, described the implementation of the Executive Order as commendable, saying it would lead to reduction of prices some locally manufactured medicines like antibiotics and antimalarial drugs.

A former chairman of the Association of Community Pharmacists of Nigeria (ACPN) FCT chapter, Pharmacist Eneojo Made, said the implementation of Zero VAT and exercise duties on Active Pharmaceutical Ingredients (APIs), which are used to produce medicines, would boost the production of essential medicines for various categories of diseases thereby enhancing availability and access to them in the country.

A former National Publicity Secretary of the Association of Community Pharmacists of Nigeria (ACPN), Kenneth Edeh Ujah, said, “When the cost of production of medicines at various stages is lower, of course, it is going to have that direct impact on the eventual cost of the medicine when people visit the pharmacy to buy their drugs.”

Also, Prof Cyril Odianose Usifoh, the immediate past president, Pharmaceutical Society of Nigeria (PSN), said the potential for success in the order was boosted because specified items include Active Pharmaceutical Ingredients (APIs), excipients, essential raw materials required for manufacturing of crucial products, including drugs, long lasting insecticidal bed nets, rapid diagnostic kits and others.