The Federal Government has supported pharmaceutical manufacturers with N24 billion in tax waivers between 2025 and 2026 as part of efforts to strengthen local drug production and reduce Nigeria’s dependence on imported medicines.
The Coordinating Minister of Health and Social Welfare, Professor Muhammad Ali Pate, disclosed this on Tuesday at the 3rd Nigeria Health Sector Joint Annual Review in Abuja.
Pate said the tax waivers were facilitated by the Executive Order signed by President Bola Tinubu in 2024 to unlock investment in the healthcare value chain.
“The Executive Order signed by Mr President in 2024 has supported N24 billion in tax waivers for pharmaceutical manufacturers in 2025–2026,” the minister said.
He said the government had also commissioned 10 factories and manufacturing lines, six of them in 2026, covering pharmaceuticals, rapid diagnostic tests, long-lasting insecticidal nets and medical oxygen.
According to him, Nigeria has secured 12 technology-transfer agreements, with a prospective investment pipeline exceeding $5 billion.
He, however, said the government’s task was to translate the prospective investments into operational businesses capable of supplying safe, effective and affordable healthcare products while creating employment opportunities for Nigerians.
The minister said the National Agency for Food and Drug Administration and Control’s efforts against falsified medicines were strengthening the regulatory environment needed to support local pharmaceutical manufacturing.
He added that the government was also working to operationalise Medipool, a group purchasing organisation expected to consolidate demand for medicines and health commodities and improve government procurement.
Pate said reliable demand and effective regulation were important to the growth of local production.
The Minister of State for Health and Social Welfare, Dr Iziaq Salako, also said local pharmaceutical production had increased, with the share of medicines produced locally rising from 30 per cent in 2023 to 50 per cent in 2026.
He attributed the progress to ongoing reforms and investments in the health sector, noting that data from the Pharmaceutical Group of the Manufacturers Association of Nigeria and NAFDAC also showed an increase of about 10 per cent in the number of active local pharmaceutical companies.
The government’s efforts to expand local manufacturing form part of its broader health sector renewal agenda, which seeks to strengthen the healthcare value chain, improve access to essential medical products and build resilience in the country’s health system.
