Healthcare Equipment and Allied Equipment Products Providers of Nigeria (HEPAN) has commended President Bola Ahmed Tinubu for signing an Executive Order to increase the local production of medical and other healthcare products. These products include pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, and medical textiles.
The decree introduces zero tariffs, excise duties, and VAT on specified machinery, equipment, and raw materials to reduce local production costs and enhance local manufacturer competitiveness. Items included in the order are Active Pharmaceutical Ingredients, Excipients, and other essential raw materials required for manufacturing critical health products. These products include drugs, syringes, needles, Long-Lasting Insecticidal Nets (LLIN), and Rapid Diagnostic Kits.
The law also provides for establishing market-shaping mechanisms, such as a framework for 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. This framework aims to expedite regulatory approvals for players within the sector and reduce bottlenecks they may face in service delivery to the Nigerian market. Agencies, including the Nigeria Customs Service and FIRS, have been mandated to ensure swift implementation, with special waivers and exemptions effective for two years.
HEPAN National President, Dr. Ifeanyi Nwankwo, commended the signing, stating: “The implication of this order by His Excellency President Bola Ahmed Tinubu would go a long way in greatly reducing the cost of medical services for everyday Nigerians while also creating more jobs for our unemployed youths.”
“The association also expresses sincere gratitude to the Minister of Health, Dr. Muhammad Ali Pate, for expediting the signing of the order.”
HEPAN Board Chairman, Alhaji Mustapha Husain Falaki, added: “This is a laudable policy needing the support and collaboration of all industry stakeholders to ensure its successful implementation.”
He expressed HEPAN’s commitment to ensuring the policy’s success and flawless execution and adherence by all HEPAN members.
Falaki pleaded with the Director General of NAFDAC to consider reducing the cost of GMP certificates for medical devices.
“Reduction in the cost of GMP certification is another key element that will further bring down the cost of medical devices in the Nigerian market and make basic medical services available and affordable for medical institutions within the Nigerian market.”
He added that this would lead to lower charges by medical institutions for Nigerians who need medical attention but are constrained by the high cost, partly due to the high cost of GMP certification passed on to end-users.
HEPAN, established in 2019, is an association of specialized medical equipment importers and other specialized medical services. The association aims to support government efforts in standardizing the importation and distribution of medical equipment into Nigeria, collaborating with other relevant government parastatals to ensure that only certified equipment, at the best market prices, is brought into the country.