FG grants drug producers N24bn tax waivers to spice up native manufacturing

Politics

By Linda Ikeji
11 November 2026, 2:12 pm

Coordinating Minister of Health and Social Welfare Muhammad Pate has introduced that the Nigerian authorities has granted ₦24 billion in tax waivers to pharmaceutical producers between 2025 and 2026 to broaden native manufacturing of medicines and cut back reliance on imports.

Speaking on the 2026 Nigeria Health Sector Joint Annual Review in Abuja, Pate stated the waivers have been a part of incentives launched underneath a presidential govt order signed in 2024 to help home manufacturing of medicines, medical tools and different important healthcare merchandise.

“We have 12 technology-transfer agreements and a prospective investment pipeline exceeding $5 billion,” he stated. Pate stated the federal government’s precedence was to show these potential investments into working factories and companies.

“Our task is to help those prospective investments become operating businesses that supply safe, effective and affordable products and create opportunities for Nigerians,” he stated.

The minister stated 10 factories or manufacturing strains had been commissioned underneath the federal government’s healthcare industrialisation programme, together with six in 2026. The amenities produce medicines, speedy diagnostic checks, long-lasting insecticidal nets and medical oxygen. He credited the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), coordinated by Abdu Mukhtar, with supporting the enlargement.

Minister of State for Health and Social Welfare Iziaq Salako stated regionally manufactured medicines accounted for 50 per cent of Nigeria’s pharmaceutical market in 2026, up from 30 per cent in 2023. He stated figures from the Pharmaceutical Group of the Manufacturers Association of Nigeria and the National Agency for Food and Drug Administration and Control (NAFDAC) additionally confirmed a rise of about 10 per cent within the variety of lively native pharmaceutical firms.

Pate stated NAFDAC was tightening controls towards falsified medicines. He additionally stated the federal government was working to get Medipool, a bunch buying organisation, up and operating. The initiative is designed to pool authorities demand for medicines and different healthcare provides whereas permitting current provide channels to proceed working. The authorities expects pooled buying to make demand extra predictable for native producers.

President Bola Tinubu signed the manager order in July 2024, granting reduction from tariffs, excise duties and worth added tax on specified pharmaceutical equipment, tools and uncooked supplies. The presidency has described the order as a serious well being sector reform aimed toward attracting funding, making native producers extra aggressive and reducing the price of pharmaceutical merchandise.

At the eighth Nigeria Pharma Manufacturers Expo in Lagos in September 2026, Salako stated the federal government was concentrating on at the least 70 per cent native manufacturing of important healthcare merchandise by 2030. He stated 87 producers have been benefiting from zero tariffs on pharmaceutical equipment, lively pharmaceutical components and different manufacturing supplies.

Salako additionally stated PVAC had secured about $2 billion in financing commitments at single-digit rates of interest, with round 50 Nigerian healthcare firms in superior discussions for funding. He stated higher home manufacturing would assist shield Nigeria’s medication provide from disruptions in worldwide provide chains.

Salako stated Nigeria wanted to broaden past completed medicines into the manufacturing of lively pharmaceutical components, vaccines, diagnostic checks and different important provides. He recognized analysis, innovation, regulatory cooperation and entry to regional markets as priorities. Further enlargement will depend upon sustained funding, entry to financing and producers’ skill to fulfill high quality requirements.

The annual assessment, held underneath the theme “Make the Data Count”, brings collectively federal and state officers, growth companions and different stakeholders to evaluate progress underneath the Nigeria Health Sector Renewal Investment Initiative. The initiative makes use of a sector-wide method to enhance coordination, financing and accountability in healthcare supply.