The Federal Government has granted pharmaceutical manufacturers N24 billion in tax waivers between 2025 and 2026 to boost local drug production and reduce Nigeria’s dependence on imported medicines.
Muhammad Pate, Coordinating Minister of Health and Social Welfare, disclosed this on Tuesday at the 3rd Nigeria Health Sector Joint Annual Review in Abuja.
Pate recalled that the tax waivers were facilitated by an Executive Order signed by President Bola Tinubu in 2024 to attract investment into the healthcare value chain.
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“The Executive Order signed by Mr President in 2024 has supported N24 billion in tax waivers for pharmaceutical manufacturers in 2025–2026,” the minister said.
He also disclosed that the government had secured 12 technology-transfer agreements and was pursuing prospective investments worth more than $5 billion in healthcare manufacturing.
According to him, the priority was to convert these prospective investments into actual manufacturing activities that would produce affordable healthcare products and create jobs.
Pate further informed that 10 factories and manufacturing lines had been commissioned under the government’s healthcare industrialisation programme, including six in 2026.
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He said the facilities cover the production of pharmaceuticals, rapid diagnostic tests, long-lasting insecticidal nets and medical oxygen.
The minister acknowledged the contribution of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), coordinated by Abdu Mukhtar, to efforts to expand domestic manufacturing.
He also disclosed that the National Agency for Food and Drug Administration and Control (NAFDAC) was strengthening the regulatory environment through its efforts to tackle falsified medicines.
Pate also said the government is working to operationalise Medipool, a group purchasing organisation expected to consolidate demand for medicines and other health commodities while improving government procurement.
He noted that reliable demand and effective regulation were critical to the growth of local pharmaceutical production.
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Iziaq Salako, Minister of State for Health and Social Welfare, said the share of medicines produced locally had increased from 30% in 2023 to 50% in 2026.
He attributed the increase to ongoing reforms and investments in the health sector, adding that data from the Pharmaceutical Group of the Manufacturers Association of Nigeria and NAFDAC also showed an increase of about 10% in the number of active local pharmaceutical companies.
According to him, the expansion of domestic pharmaceutical manufacturing is part of the Federal Government’s broader health sector renewal agenda, which seeks to strengthen the healthcare value chain, improve access to essential medical products and build resilience in Nigeria’s health system.
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