The Nigerian federal government announced it has extended N24 billion in tax exemptions to pharmaceutical producers across the 2025 and 2026 fiscal windows to ramp up domestic drug manufacturing and decrease reliance on foreign medical imports. Muhammad Pate, the Coordinating Minister of Health and Social Welfare, revealed this initiative during the 2026 Nigeria Health Sector Joint Annual Review hosted in Abuja.
According to the minister, these financial concessions stem from a presidential executive order enacted in 2024 aimed at empowering local industries to produce pharmaceuticals, diagnostic kits, and related healthcare supplies. Furthermore, the administration has finalized 12 technology-transfer pacts while targeting prospective investments surpassing $5 billion for the domestic medical manufacturing ecosystem.
What measures are being taken to expand manufacturing?
Mr Pate noted that 10 new industrial facilities or production lines have been operationalized under the national healthcare industrialisation drive, with six launched in 2026 alone. These plants manufacture essential pharmaceutical items, rapid diagnostic tools, insecticidal nets, and medical oxygen. He credited the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), managed by Abdu Mukhtar, for driving these expansion efforts.
Speaking at the same forum, the Minister of State for Health and Social Welfare, Iziaq Salako, highlighted significant growth in domestic drug manufacturing. Locally produced pharmaceuticals now command 50 percent of the national medicine market in 2026, marking a substantial rise from 30 percent in 2023. Data compiled alongside the National Agency for Food and Drug Administration and Control (NAFDAC) also pointed to a ten percent expansion in active domestic drug-producing enterprises.
How is the government sustaining industry growth?
To safeguard the sector, NAFDAC is intensifying regulatory enforcement against counterfeit drugs. Additionally, authorities are setting up Medipool, a centralized group purchasing framework intended to stabilize demand and streamline public procurement of medical commodities.
This push builds on prior policy milestones. In July 2024, President Bola Tinubu implemented fiscal reforms waiving tariffs, excise duties, and Value Added Tax on essential manufacturing machinery and raw inputs. By late 2026, federal authorities articulated a broader goal to achieve 70 percent domestic production of essential healthcare goods by the year 2030, reinforcing national medicine security against global supply chain vulnerabilities.