FG grants N6bn tax waivers to drug manufacturers

Nigeria's Federal Government has provided more than N6 billion in tax waivers to 47 domestic pharmaceutical manufacturers. This incentive is part of the "Presidential Executive Order on Health Products," designed to accelerate local production of medicines and decrease the nation's dependence on imported pharmaceuticals. The Ministry of Health and Social Welfare announced these details in its "State of the Health of the Nation Report."

The report indicates that these tax incentives were implemented between March and August 2025. A total of 115 pharmaceutical manufacturers have been enrolled in the program and are eligible for these benefits, with more companies being added. These waivers are a key component of the government's strategy to enhance the competitiveness of Nigeria's pharmaceutical sector, draw investment into local manufacturing, and expand the domestic supply of essential medicines and medical products.

Beyond tax incentives, the government has also offered technical assistance to over 20 local manufacturers and regulatory bodies. Engagements with more than 84 manufacturers and service providers are underway to strengthen the country's healthcare value chain. These interventions have reportedly unlocked approximately $75 million in near-term investments for over a dozen companies and created a pipeline for projects valued at $1 billion and €1 billion. The government has also facilitated strategic partnerships to bolster local manufacturing, including collaborations focused on expanding pharmaceutical production and improving access to medical diagnostics and healthcare technologies. President Bola Tinubu signed the Executive Order in 2024 to stimulate domestic manufacturing through fiscal and regulatory incentives.