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Nigerians may soon experience relief from skyrocketing drug prices, as the National Institute for Pharmaceutical Research and Development (NIPRD) projects a significant reduction in the cost of medicines within the next six to ten months.
Speaking in Abuja on Friday, the Director-General of NIPRD, Dr. Obi Adigwe, said the anticipated drop in prices is the direct result of the implementation of the Presidential Executive Order on Increasing Local Production of Healthcare Products.
According to Adigwe, the Executive Order—signed by President Bola Tinubu in 2024—provides for the exemption of tariffs, excise duties, and VAT on pharmaceutical machinery, raw materials, and other related inputs used in drug manufacturing. He stated that the policy, if properly implemented, would lead to a noticeable fall in medicine prices within “30 to 45 weeks.”
“We anticipate that Nigerians will start seeing a reduction in drug prices between the next six to ten months. This is because the Presidential Executive Order, which has been fully gazetted and implemented, eliminates tariffs, excise duties and VAT on critical pharmaceutical inputs,” he explained.
Dr. Adigwe noted that the implementation phase took approximately six to seven months, during which extensive stakeholder engagements, customs mapping, and the development of a comprehensive verification framework were carried out.
“After thorough stakeholder consultations, the gazette was published and a customs directive was issued. As we speak, 87 pharmaceutical manufacturers are currently benefitting from this policy,” he said.
He also revealed that a verification team had already visited multiple pharmaceutical facilities in Lagos and confirmed that the companies had begun enjoying the incentives granted by the executive order.
Beyond the projected price drop, Adigwe highlighted the wider economic impact of the policy, pointing out that increased local production is already spurring factory expansion, attracting new investors, and generating jobs across related industries.
“Each pharmaceutical job created indirectly results in up to 10 additional jobs in agriculture, logistics, packaging, marketing, and supply chain sectors,” he said.
Dr. Adigwe further added that the executive order is also enabling the development of products that could soon achieve World Health Organization (WHO) prequalification, including rapid diagnostic test kits and syringes.
He lauded the federal government for what he described as unprecedented support for the pharmaceutical sector, noting that the Presidential Order was not only signed but fully implemented in record time.
“This administration didn’t just sign the Executive Order—it made sure it was implemented. For the first time, the pharmaceutical industry has received this level of deliberate, focused support,” he emphasized.
He concluded by noting that the creation of specific Harmonized System (HS) codes has allowed eligible companies to import critical inputs from India, China, and Europe without financial or administrative bottlenecks.
As Nigeria battles inflation and a high cost of living, the success of this policy could prove critical in expanding access to affordable healthcare and strengthening the country’s pharmaceutical independence.