The Nigeria Employers Consultative Association (NECA) has hailed the federal government for the new executive order on zero tariffs, excise duty, and value-added tax (VAT) for pharmaceutical raw materials, machinery, and equipment, News About Nigeria reports.
The Director-General of the Association, Adewale-Smatt Oyerinde, made this known in a statement, commending President Bola Ahmed Tinubu for the new order.
He noted that the order will allow the association to take a breather, adding that it will also boost activities in the pharmaceutical sector.
He stated that the order is coming at a time when local pharmaceutical companies are facing an almost existential challenge and lamented that the sector has been beset with an acute shortage of productive raw materials, and high cost of production, among others.
“To boost activities in the pharmaceutical sector, President Bola Tinubu signed an Executive Order introducing a zero tariff, excise duties, and value-added tax (VAT) on some pharmaceutical raw materials and specialised pharmaceutical machinery and equipment to boost the production of essential healthcare products in the economy.
“The executive order came at a time when local pharmaceutical companies are facing an almost existential challenge. The sector has been beset with an acute shortage of productive raw materials, a high cost of production and low output in recent years due to the high cost of imports of productive machines and other input materials.”
“NECA commended the President for signing the “Executive Order, which allows for zero tariffs, duties, and VAT on pharmaceutical raw materials, machinery, and equipment.
“The quick and timely implementation of the order would provide a leeway out of the current cost challenges and allow the sector to rebound.
“NECA observes with dismay the huge cost challenges facing the sector as a result of the depreciation of the naira, which generally increased the cost of imports of input materials and the attendant clearing charges.
“About 50 percent of raw materials used in the pharmaceutical sector is imported, notwithstanding the unfavourable Naira parity, import duties and other charges,” the statement reads in part.
NECA, however, called for a quick and timely implementation of the order to provide a leeway out of the current cost challenges and allow the sector to rebound.
