The Nigerian authorities stated it has granted N24 billion in tax waivers to pharmaceutical manufacturers between 2025 and 2026 as a part of efforts to improve local production of medicines and scale back dependence on imported healthcare merchandise.
The Coordinating Minister of Health and Social Welfare, Muhammad Pate, disclosed this on Tuesday on the 2026 Nigeria Health Sector Joint Annual Review (JAR) in Abuja.
Mr Pate stated the incentives have been launched beneath the presidential govt order signed in 2024 to help home manufacturing of medicines, medical gear and different important healthcare merchandise.
He additionally disclosed that the federal government had secured 12 technology-transfer agreements and was pursuing potential investments exceeding $5 billion within the healthcare manufacturing sector.
According to him, the federal government is working to be sure that the proposed investments translate into operational companies able to producing inexpensive healthcare merchandise and creating employment alternatives.
“The Executive Order signed by Mr President in 2024 has supported N24 billion in tax waivers for pharmaceutical manufacturers in 2025–2026,” he stated.
“We have 12 technology-transfer agreements and a prospective investment pipeline exceeding $5 billion.”
Mr Pate stated the federal government’s precedence was to translate the possible investments into precise manufacturing actions.
“Our task is to help those prospective investments become operating businesses that supply safe, effective and affordable products and create opportunities for Nigerians,” he stated.
Expansion of local manufacturing
Mr Pate stated 10 factories or manufacturing strains had been commissioned beneath the federal government’s healthcare industrialisation programme, together with six in 2026.
He defined that the services cowl the production of prescribed drugs, speedy diagnostic assessments, long-lasting insecticidal nets and medical oxygen.
The minister acknowledged the contribution of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), coordinated by Abdu Mukhtar, to the federal government’s efforts to develop home manufacturing.
Also talking on the overview, the Minister of State for Health and Social Welfare, Iziaq Salako, reported a rise in local pharmaceutical production.
Mr Salako stated domestically manufactured medicines accounted for 50 per cent of Nigeria’s pharmaceutical market in 2026, in contrast with 30 per cent in 2023.
He stated figures from the Pharmaceutical Group of the Manufacturers Association of Nigeria and the National Agency for Food and Drug Administration and Control (NAFDAC) additionally confirmed an roughly 10 per cent improve within the variety of energetic local pharmaceutical firms.
He stated the enhancements mirrored ongoing efforts to strengthen home manufacturing and scale back Nigeria’s dependence on imported healthcare merchandise.
Meanwhile, Mr Pate stated NAFDAC was strengthening regulatory measures in opposition to falsified medicines to help the event of the pharmaceutical trade.
He additionally disclosed that the federal government was working to operationalise Medipool, a bunch buying organisation designed to consolidate demand for medicines and different healthcare commodities.
According to him, the initiative would assist organise authorities procurement whereas permitting different provide channels to proceed working.
The association is meant to create extra predictable demand for healthcare merchandise and help local manufacturers.
Background
Nigeria has been working to develop home pharmaceutical manufacturing amid considerations about dependence on imported medicines and disruptions to worldwide provide chains.
In July 2024, President Bola Tinubu signed an govt order introducing fiscal incentives to encourage local production of medicines and different healthcare merchandise.
The order offered aid from tariffs, excise duties and Value Added Tax (VAT) on specified pharmaceutical equipment, gear and uncooked supplies utilized in manufacturing.
In May 2025, PREMIUM TIMES reported that the presidency had recognized the chief order as one of many authorities’s main well being sector reforms aimed toward attracting funding and lowering the price of pharmaceutical merchandise.
The authorities stated the incentives have been designed to make local manufacturers extra aggressive and encourage elevated production of important healthcare merchandise.
In September 2026, PREMIUM TIMES additionally reported that the federal authorities was focusing on not less than 70 per cent local production of important healthcare merchandise by 2030.
Speaking on the eighth Nigeria Pharma Manufacturers Expo in Lagos, Mr Salako stated the federal government was utilizing financing and tax incentives to strengthen home manufacturing.
He disclosed that 87 local manufacturers have been benefiting from the presidential govt order granting zero tariffs on pharmaceutical equipment, energetic pharmaceutical substances and different production supplies.
Mr Salako additionally stated PVAC had secured about $2 billion in financing commitments at single-digit rates of interest, with roughly 50 Nigerian healthcare firms in superior discussions for funding.
He defined that rising local production would assist strengthen medication safety and scale back the nation’s vulnerability to disruptions in worldwide provide chains.
Sustaining local production
Despite the reported progress, Nigeria’s ambition to develop local pharmaceutical manufacturing will rely on sustained funding, entry to financing and the power of manufacturers to produce medicines that meet required high quality requirements.
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At the September 2026 pharmaceutical manufacturers’ expo, Mr Salako emphasised the significance of increasing production past completed medicines to embody energetic pharmaceutical substances, vaccines, diagnostics and different important well being commodities.
He additionally recognized analysis, innovation, regulatory cooperation and entry to regional markets as vital areas for growing the trade.
The 2026 Joint Annual Review, held beneath the theme “Make the Data Count”, brings collectively federal and state authorities officers, growth companions and different stakeholders to assess progress beneath the Nigeria Health Sector Renewal Investment Initiative.
The initiative is being carried out via the Sector-Wide Approach, which seeks to enhance coordination, financing and accountability in healthcare supply.
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