The recent reduction in import duties on 127 items by the Federal Government, including medical and surgical devices as well as manufacturing machines, which ordinarily should have received unanimous acceptance from pharmacists across all fields of practice, has instead created a divide between pharmacists in the manufacturing sector and those in retail practice.
Local manufacturers view the zero-duty policy on manufacturing machines as a welcome development, while retail pharmacists argue that maintaining a 20 per cent duty on antimalarials will not reduce prices and may worsen access.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced through a circular dated 1 April, the approval of tariff reductions across 127 product lines. The changes include a 20 per cent import duty on antimalarials; zero duty on breathing apparatus and gas masks (down from 5 per cent); five per cent duty on modular surgical operating theatres (down from 20 per cent); and zero duty on agricultural and manufacturing machinery, including pharmaceutical equipment, among others.
However, stakeholders in the pharmaceutical industry remain divided over the policy, calling for a more structured framework and the inclusion of PMGMAN and a Presidential Committee made up of relevant professionals for effective implementation.
In an exclusive interview, the Managing Director of May & Baker Plc, Pharm. Patrick Ajah, commended the Federal Government for reviewing duties on pharmaceuticals, particularly manufacturing machinery, which he said will enhance production capacity and boost output among local manufacturers. However, he noted that any adjustment in tariffs on antimalarials, whether retaining the existing rate or introducing a new one, requires independent research and consultation with local industry players for effective implementation.
“For products like antimalarials, government needs to understand the consumption pattern. How many packs are consumed annually in the country? What is the production capacity of local manufacturers? These two must be aligned. You cannot ignore that,” he advised.
Further analysing the policy, Ajah noted that while zero duty on machinery can help expand production and may eventually lower costs, such effects may not be immediate. He also appreciated the earlier executive order granting zero duties on APIs and excipients, which he credited for helping stabilise prices.
“Many manufacturers would have increased prices by over 15 per cent if not for the earlier executive order. So maintaining current prices is already a form of impact,” he said.
The President of the Pharmaceutical Society of Nigeria (PSN), Pharm. Tanko Ayuba, also described the move as a welcome development but cautioned that proper implementation is critical to achieving its objectives.
He said that, under normal circumstances, reducing duties on drugs and pharmaceutical products should lead to lower prices and improved access to medicines and healthcare.
According to Ayuba, “Government must see the need for urgent intervention with a template akin to an all-purpose special vehicle that can help address fundamental issues relating to local manufacturing and drug pricing.”
In a separate interview, former Chairman of Lagos ACPN, Pharm. (Mrs) Abiola Paul-Ozieh, reiterated that the Federal Government’s objectives—protecting and stimulating local pharmaceutical manufacturing, as well as aligning with AfCFTA and ECOWAS CET 2022–2027—are commendable.
However, she noted that, as a malaria-endemic country with a high disease burden, maintaining a 20 per cent duty on antimalarials may not benefit consumers, as prices could remain high and unaffordable.
“As long as we cannot produce APIs locally, there will be an imbalance between inputs and outputs, with a risk of rising costs without adequate local substitution,” she said.
Paul-Ozieh, who is also Chairman of the Healthcare Providers Association of Nigeria (HCPAN), Lagos Chapter, added:
“We should note that malaria remains highly prevalent in Nigeria and continues to pose a major burden. Retaining a 20 per cent duty on antimalarials may increase prices for consumers, especially since over 50 per cent of these medicines are imported. This could reduce access due to affordability constraints and negatively impact health outcomes. We must also acknowledge our inability, as a nation, to produce Active Pharmaceutical Ingredients (APIs).”
The National Chairman of the Association of Community Pharmacists of Nigeria, Ambrose Ezeh, called for the creation of a Presidential Committee led by professionals to prevent misapplication of the policy and avoid confusion within the industry.
“This is both a technical and professional matter best handled by a Presidential Committee on an ad hoc basis, with clearly defined terms of reference within a specified timeline,” he said.
Given the country’s heavy reliance on foreign exchange for both APIs and finished pharmaceutical products, Paul-Ozieh urged the government to work towards self-reliance, not only in the production of finished drugs but also through deliberate support and initiatives to enable local API production.
She noted that once an enabling environment for API production is established, policies such as increasing tariffs on certain categories of finished products would become more beneficial to the country, manufacturers, and patients alike.
