The authorities need to take further action to reduce drug prices.
In June of this year, President Bola Tinubu enacted an executive order aimed at boosting local production of healthcare products, including pharmaceuticals, diagnostics, and devices like needles and syringes. However, this order has had minimal impact on drug prices, which remain high. Therefore, it is encouraging that the Federal Ministry of Health and Social Welfare has finalized an executive order to eliminate Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices. “This is a significant milestone for our healthcare system. By implementing these tax relief measures, we are not only supporting local manufacturers but also making essential medicines more affordable for millions of Nigerians,” stated ministry spokesperson Alaba R. Balogun.
As stakeholders await the order with optimism that it will achieve its intended goals, the Pharmaceutical Society of Nigeria (PSN) and the Association of Pharmaceutical Importers of Nigeria (APIN) have offered various suggestions for moving forward. In 2013, Nigeria agreed to follow the recommendation of an Economic Community of West African States (ECOWAS) committee that proposed zero percent duty on drug imports within the sub-region. Given that neighboring African countries are already benefiting from this zero-tax regime along with lower port charges for drug imports, we believe the federal government needs to reassess all existing policies that affect healthcare delivery in Nigeria.
The primary challenge facing the country over the years has been the inability to provide our citizens, particularly those in rural areas, with access to basic primary healthcare. With the rising costs of essential medications, it is clear that the lives of many impoverished Nigerians are significantly at risk. We therefore call on the president to instruct the relevant authorities to eliminate all counterproductive policies, ensuring that sufficient drugs and medications are made available to citizens in need at affordable prices. According to Section 17 of our Constitution, the government is obligated to enhance the welfare of Nigerian citizens by guaranteeing access to adequate medical and health facilities.
Currently, the most effective way to ensure that quality healthcare services reach the majority of Nigerians is by providing the public with access to essential medications at affordable prices. Without this access, preventable diseases that are easily treatable will continue to claim lives in Nigeria. By granting the public unrestricted access to essential drugs at reasonable prices, we can also save a portion of the billions spent annually on medical tourism. Recognizing that health is wealth, many countries have successfully built their economies around robust healthcare delivery systems.
While we support the current administration’s efforts to generate revenue, health sector authorities must eliminate policies that contradict the World Trade Organization’s (WTO) recommendation of no more than 5 percent duty on medications. This adjustment is essential for advancing the global vision of affordable universal healthcare and eradicating diseases. In the absence of health, wealth holds no value.
