Stakeholders applaud Tinubu’s Executive order on healthcare products
The Healthcare Equipment and Allied Products Providers of Nigeria have praised President Bola Tinubu for signing the executive order aimed at increasing local production of medical and other healthcare products.
In a press statement issued on Friday, the equipment providers also urged the National Agency for Food and Drug Administration and Control to consider reducing the cost of Good Manufacturing Practices certificates for medical devices.
The Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate, announced in June that President Tinubu had signed an executive order to boost local production of healthcare products, including pharmaceuticals, diagnostics, and devices such as needles and syringes, as well as biologicals and medical textiles.
Pate stated that the order is crucial to the success of the Presidential Initiative for Unlocking the Healthcare Value Chain, which was approved by the President in October 2023.
He explained that the order introduces zero tariffs, excise duties, and Value Added Tax on specified machinery, equipment, and raw materials, aiming to reduce production costs and enhance the competitiveness of local manufacturers.
Specified items include Active Pharmaceutical Ingredients, excipients, and other essential raw materials required for manufacturing critical health products like drugs, syringes, needles, long-lasting insecticidal nets, and rapid diagnostic kits, among others.
The order also includes market-shaping mechanisms such as framework contracts and volume guarantees to encourage local manufacturers. It mandates collaboration between the Ministers of Health, Finance, and Industry, Trade and Investment to develop a Harmonised Implementation Framework, expediting regulatory approvals and reducing bottlenecks.
Agencies such as the Nigeria Customs Service, NAFDAC, the Standards Organisation of Nigeria, and the Federal Inland Revenue Service will ensure swift implementation, with special waivers and exemptions effective for two years.
According to HEPAN, the order will help mitigate the rising cost of medical services in the country, particularly at a time when Nigerians’ disposable incomes are constrained by record-high inflation rates.
The National President of HEPAN, Dr Ifeanyi Nwankwo, said, “The implications of this order by President Tinubu will greatly reduce the cost of medical services for everyday Nigerians while also creating more jobs for unemployed youths.”
He added, “The association also expresses its sincere gratitude to the Minister of Health, Prof Muhammad Pate, for expediting the signing of the decree.”
The Board Chairman of HEPAN, Mustapha Falaki, stated, “This is a laudable policy requiring the support and collaboration of all industry stakeholders to ensure its successful implementation.”
Falaki expressed HEPAN’s commitment, as a critical stakeholder in the Nigerian healthcare services support and delivery sector, to ensuring the policy’s success, flawless execution, and adherence by all HEPAN members.
He also appealed to the Director-General of NAFDAC, Prof Mojisola Adeyeye, to consider reducing the cost of GMP certificates for medical devices.
“Reducing the cost of GMP certification is another key element that will further lower the cost of medical devices in the Nigerian market and make basic medical services more available and affordable for medical institutions,” he noted.
He added that the eventual effects of this would lead to even lower charges by medical institutions for Nigerians who need medical attention but are constrained by the high cost of GMP certification, which is ultimately passed on to end-users.
According to the World Health Organisation, GMP is a component of quality assurance that ensures medicinal products are consistently produced and controlled to the quality standards appropriate to their intended use and as required by the product specifications.
GMP defines quality measures for both production and quality control and establishes general measures to ensure that processes necessary for production and testing are clearly defined, validated, reviewed, and documented, and that the personnel, premises, and materials are suitable for the production of pharmaceuticals and biologicals, including vaccines.
HEPAN is an association of specialised medical equipment importers and other specialised medical services, established in 2019 to support government efforts in standardising the importation and distribution of medical equipment into Nigeria, in collaboration with other relevant government parastatals.
