Thursday, November 12, 2026 - Coordinating Minister of Health and Social Welfare Muhammad Pate has announced that the Nigerian government has granted ₦24 billion in tax waivers to pharmaceutical manufacturers between 2025 and 2026 to expand local production of medicines and reduce reliance on imports.
Speaking at the 2026 Nigeria Health Sector Joint Annual
Review in Abuja, Pate said the waivers were part of incentives introduced under
a presidential executive order signed in 2024 to support domestic production of
medicines, medical equipment and other essential healthcare products.
“We have 12
technology-transfer agreements and a prospective investment pipeline exceeding
$5 billion,” he said. Pate said the government’s priority was to turn those
prospective investments into operating factories and businesses.
“Our task is to help those prospective investments become
operating businesses that supply safe, effective and affordable products and
create opportunities for Nigerians,” he said.
The minister said 10 factories or manufacturing lines had
been commissioned under the government’s healthcare industrialisation
programme, including six in 2026. The facilities produce medicines, rapid
diagnostic tests, 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 expansion.
Minister of State for Health and Social Welfare Iziaq Salako
said locally manufactured medicines accounted for 50 per cent of Nigeria’s
pharmaceutical market in 2026, up from 30 per cent in 2023. He said figures
from the Pharmaceutical Group of the Manufacturers Association of Nigeria and
the National Agency for Food and Drug Administration and Control (NAFDAC) also
showed an increase of about 10 per cent in the number of active local
pharmaceutical companies.
Pate said NAFDAC was tightening controls against falsified
medicines. He also said the government was working to get Medipool, a group
purchasing organisation, up and running. The initiative is designed to pool
government demand for medicines and other healthcare supplies while allowing
existing supply channels to continue operating. The government expects pooled
purchasing to make demand more predictable for local manufacturers.
President Bola Tinubu signed the executive order in July
2024, granting relief from tariffs, excise duties and value added tax on
specified pharmaceutical machinery, equipment and raw materials. The presidency
has described the order as a major health sector reform aimed at attracting
investment, making local manufacturers more competitive and lowering the cost
of pharmaceutical products.
At the eighth Nigeria Pharma Manufacturers Expo in Lagos in
September 2026, Salako said the government was targeting at least 70 per cent
local production of essential healthcare products by 2030. He said 87
manufacturers were benefiting from zero tariffs on pharmaceutical machinery,
active pharmaceutical ingredients and other production materials.
Salako also said PVAC had secured about $2 billion in
financing commitments at single-digit interest rates, with around 50 Nigerian
healthcare companies in advanced discussions for funding. He said greater
domestic production would help protect Nigeria’s medicine supply from
disruptions in international supply chains.
Salako said Nigeria needed to expand beyond finished
medicines into the production of active pharmaceutical ingredients, vaccines,
diagnostic tests and other essential supplies. He identified research,
innovation, regulatory cooperation and access to regional markets as
priorities. Further expansion will depend on sustained investment, access to
financing and manufacturers’ ability to meet quality standards.
The annual review, held under the theme “Make the Data
Count”, brings together federal and state officials, development partners and
other stakeholders to assess progress under the Nigeria Health Sector Renewal
Investment Initiative. The initiative uses a sector-wide approach to improve
coordination, financing and accountability in healthcare delivery.
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