The National Agency for Food and Drug Administration and Control (NAFDAC) has commended President Bola Tinubu’s recent Executive Order aimed at reducing healthcare costs and boosting local drug production.
The Director General (DG) of NAFDAC, Prof. Mojisola Adeyeye, in a statement, on Saturday, praised the order, stressing its potential to transform the sector by increasing local production of healthcare products.
Adeyeye said it has been six years since NAFDAC began its transformation, turning the agency into a robust and stable regulatory organisation.
“Today we can look back at the Executive Order and say that the efforts are paying off,” she stated.
The DG pointed out that the persistent high cost of importing all materials needed for manufacturing saying: “My professional heart ached for local manufacturers considering the import duties they have to pay for all materials, some packaging materials and equipment.”
She stated her advocacy for zero tariffs, adding that NAFDAC provides local manufacturers with the necessary industrial breathing space to thrive.
“Revitalising Nigeria’s Healthcare: President Tinubu’s Bold New Executive Order President Tinubu, GCFR, has signed an Executive Order (EO) to transform Nigeria’s healthcare sector by increasing local production of healthcare products, reducing costs of healthcare equipment and consumables, and promoting local investments. This initiative, part of the Nigeria Health Sector Renewal Investment Initiative (NHSRII), addresses longstanding challenges and aims to improve health outcomes for Nigerians,” she said.
As stated by the Office of the Coordinating Minister of Health and Social Welfare, the new Executive Order exempts specified pharmaceutical machinery and essential raw materials from tariffs and excise duties, provides special waivers on pharmaceutical inputs and establishes framework contracts and volume guarantees to stabilize the local manufacturing market. Regulatory harmonization and expedited approvals are also part of the Executive Order, aiming to streamline approval processes and enhance the local healthcare industry.
“Zero Tariffs and Excise Duties: Exempting specified pharmaceutical machinery, equipment, goods, and accessories from tariffs and excise duties to reduce production costs and make healthcare products more affordable. Special Waivers on Pharmaceutical Inputs: APIs, excipients, and other essential raw materials, including those for Long-lasting Insecticidal Nets (LLINs) and Rapid Diagnostic Kits, will benefit from zero tariffs, excise duties, and VAT, lowering the price of essential medicines and medical supplies.
“Market Shaping: Establishing framework contracts and volume guarantees to stabilize the local manufacturing market. Regulatory Harmonization and Expedited Approvals: Developing a Harmonized Implementation Framework to guide regulatory agencies in streamlining approval processes. Implementation and Compliance: Agencies like the Nigeria Customs Service, NAFDAC, SON, and FIRS are mandated to ensure swift implementation. The waivers and exemptions are valid for two years from the effective date,” THE NAFDAC DG also indicated key provisions the EO includes.
“The waivers and exemptions are valid for two years from the effective date,” she noted
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