The Lagos Chamber of Commerce and Industry (LCCI) has hailed the recent Executive Order introducing zero tariffs, excise duties, and Value-Added Tax (VAT) on imported pharmaceutical inputs.

This bold move, it said, aligns with the broader initiative to unlock the healthcare value chain, emphasising the revitalisation of local drug manufacturing.

Director General of LCCI , Dr Chinyere Almona in a statement said by significantly reducing production costs, this initiative will enhance the competitiveness of local manufacturers. She lamented that the recent exit of some pharmaceutical firms has made drug availability difficult, leading to higher costs of medications, arguing that this policy intervention has come at a good time.

Almona said the success of the implementation of the order will require close collaboration among the relevant Ministries, Departments, and Agencies (MDAs).

She advised that a harmonised implementation framework should be developed to ensure efficient execution. Agencies such as the Nigeria Customs Service, NAFDAC, SON, and FIRS, she advised, must create a smooth operational environment in order to eliminate bureaucratic delays and bottlenecks.

The LCCI boss acknowledged that eliminating taxes on crucial inputs paves the way for a revitalised local pharmaceutical industry and improved access to affordable healthcare products.

She noted that countries like India and China have successfully implemented similar policies and have become major drug manufacturing hubs in their regions.

Nigeria’s new directive should align with these successful models to enhance local manufacturing capacity and reduce import dependency she stated.

She said: “In Nigeria, about 70 percent of the country’s pharmaceutical needs are met through imports. This heavy reliance on imports is primarily due to limited local production capacity and various challenges in the sector such as high production costs and regulatory hurdles.

“If sustained, this policy can position Nigeria as a drug manufacturing hub for sub-Saharan Africa, leveraging the African Continental Free Trade Area (AfCFTA) to expand drug exports across the continent.”