Nigerians should expect drug costs to drop in 10 months – NIPRD

Obi  Adigwe, director-general of the National Institute for Pharmaceutical Research and Development, says Nigerians can expect a reduction in medicine prices within the next six to ten months.

He gave the assurance on Friday in Abuja.

Mr Adigwe attributed the expected relief to the implementation of the Presidential Executive Order on Increasing Local Production of Healthcare Products, signed by President Bola Tinubu in 2024.

The executive order, a key part of the administration’s health sector reforms, eliminates tariffs, excise duties, and value-added tax on pharmaceutical inputs.

These inputs include machinery, equipment, raw materials, and accessories used in the production of drugs, diagnostics, medical devices (such as needles and syringes), and other healthcare products.

According to Mr Adigwe, the policy is designed to reduce production costs, boost local manufacturing, and make healthcare more affordable for Nigerians.

“The executive order took about six to seven months to deconstruct, engage stakeholders, complete mapping, and navigate bureaucratic processes before it was gazetted and followed by the release of the customs circular.

“Following the circular’s release, NIPRD immediately engaged with the Nigeria Customs Service to confirm implementation and dispatched teams to Lagos to verify uptake among manufacturers.

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“Our reports confirm that 87 manufacturers have already begun accessing the incentives provided,” he said.

While acknowledging some operational-level challenges, Mr Adigwe said NIPRD and other stakeholders were actively addressing them to ensure the full benefits of the two-year policy window were realised.

“If our recommendations are implemented, Nigerians should start seeing a comparative drop in medicine prices within 30 to 45 weeks, roughly six to ten months, with more significant impacts expected over the next 20 months,” he said.

He noted that the executive order was already stimulating growth in the pharmaceutical manufacturing sector, with existing companies expanding operations and new investors expressing interest in setting up production facilities in Nigeria.

“Factory expansion means more jobs for Nigerians. When foreign companies establish locally instead of exporting at high tariffs, they build capacity, transfer technology, and grow our economy,” he added.

He also highlighted the long-term benefits of the policy, noting that for every job created in the pharmaceutical sector, up to 10 ancillary jobs were created in related fields. He said the related fields included packaging, logistics, agriculture, marketing, and supply chain management.

Mr Adigwe also highlighted growing investor interest in the local production of items like Rapid Diagnostic Test kits and syringes, with some facilities already receiving World Health Organisation prequalification.

“These are the real-life impacts of this executive order. If fully leveraged, we’ll see more factories open, higher local content, and a measurable boost to Nigeria’s gross domestic product from the pharmaceutical sector,” he said.

Mr Adigwe further pointed to the implementation of harmonised system codes, which now allow for the importation of pharmaceutical inputs and machinery classified under nearly 1,000 codes, thereby streamlining customs processes.

“HS codes enable customs officers to correctly identify exempt pharmaceutical inputs, leading to faster and more affordable importation from countries like India, China, and those in Europe,” he explained.

He commended Mr Tinubu and key stakeholders for prioritising the pharmaceutical sector, noting that it had never received this level of policy focus and speed of execution.

“Today, the pharma sector is at the forefront. No other sector has received such a bold presidential push, from executive orders to reforms like National Health Fellows, workforce policy, and Medipool.

“Fortunately, I work with colleagues across the industries, who are applying intellect, innovation, and strong networks to implement these initiatives so Nigerians can begin to feel the benefits quickly,” he said.

The executive order is part of the government’s broader effort to revitalise the health sector, strengthen pharmaceutical self-reliance, and improve access to affordable healthcare products nationwide.

Nigerians should expect drug costs to drop in 10 months – NIPRD

(NAN)