How Nigeria’s new executive order may revitalise healthcare

Nigeria has recently introduced a new executive order that aims to reduce production costs and make healthcare products more affordable by eliminating tariffs and excise duties on specified pharmaceutical machinery, equipment, goods, and accessories. The move is seen as a potential game-changer for the country's pharmaceutical industry, which has long grappled with challenges such as heavy reliance on imports and limited local production capacity. Samuel Okwuada, CEO of Remedial Health, shared his insights on the near-term impacts of this executive order during a recent interview with CNBC Africa. Okwuada highlighted the significance of the executive order but also expressed some reservations regarding its effectiveness. He pointed out that Nigeria had previously implemented zero tariffs on pharmaceutical products, questioning the need for a repeated policy. Okwuada emphasized the importance of completely eliminating additional levies, such as the Customs and Excise Tax (CET) levy, to make a tangible difference in the sector. Despite the positive intent behind the executive order, Okwuada raised concerns about the lack of robust stakeholder engagement between the government and private players in the healthcare sector. He cited a specific instance where a government directive on customs rates failed to reach the appropriate authorities in a timely manner, leading to confusion and operational challenges for businesses. Okwuada underscored the urgent need for clear communication and effective implementation of policies to drive meaningful change in the industry. When discussing the state of local production in Nigeria, Okwuada painted a stark picture, revealing that the country imports a staggering 85 percent of the medicines consumed domestically. He lamented the lack of substantial local production capacity, describing the current practice as more assembly than true manufacturing. Okwuada highlighted the vulnerability exposed by the COVID-19 pandemic, noting how countries like India restricted the export of essential medicines, prompting Nigeria to reevaluate its production capabilities for national security reasons. Despite the grim reality of the pharmaceutical landscape in Nigeria, Okwuada expressed hope for potential improvements in the future. The interview shed light on both the opportunities and challenges facing Nigeria's healthcare sector, underscoring the need for strategic partnerships, effective policymaking, and increased local manufacturing capacity to enhance healthcare accessibility and affordability for the country's population.