The Federal Government says it has granted N24 billion in tax waivers to pharmaceutical manufacturers between 2025 and 2026 as part of efforts to boost local drug production and reduce dependence on imported healthcare products.
The Coordinating Minister of Health and Social Welfare, Muhammad Pate, disclosed this at the 2026 Nigeria Health Sector Joint Annual Review in Abuja.
Pate said the incentives were introduced under the Presidential Executive Order signed in 2024 to support domestic manufacturing of medicines, medical equipment and other essential healthcare products.
He also disclosed that the government had secured 12 technology-transfer agreements and was pursuing prospective investments worth more than $5 billion in the healthcare manufacturing sector.
According to him, the government’s priority is to ensure that the proposed investments translate into operational businesses capable of producing safe, effective and affordable healthcare products while creating employment opportunities.
“The Executive Order signed by the President in 2024 has supported N24 billion in tax waivers for pharmaceutical manufacturers in 2025–2026,” he said.
Pate added that the government was working to turn the prospective investments into active manufacturing businesses that would supply essential healthcare products to Nigerians.
He further disclosed that 10 factories or manufacturing lines had been commissioned under the healthcare industrialisation programme, including six in 2026.
The facilities cover the production of pharmaceuticals, rapid diagnostic tests, long-lasting insecticidal nets and medical oxygen.
The minister acknowledged the contribution of the Presidential Initiative for Unlocking the Healthcare Value Chain, coordinated by Abdu Mukhtar, to efforts aimed at expanding domestic manufacturing.
Also speaking at the review, the Minister of State for Health and Social Welfare, Iziaq Salako, said locally manufactured medicines accounted for 50 per cent of Nigeria’s pharmaceutical market in 2026, compared with 30 per cent in 2023.
Salako said figures from the Pharmaceutical Group of the Manufacturers Association of Nigeria and the National Agency for Food and Drug Administration and Control also indicated an approximately 10 per cent increase in the number of active local pharmaceutical companies.
He said the growth reflected ongoing efforts to strengthen domestic manufacturing and reduce the country’s reliance on imported healthcare products.
Meanwhile, Pate said NAFDAC was strengthening regulatory measures against falsified medicines to support the growth of the pharmaceutical industry.
He also disclosed that the government was working to operationalise Medipool, a group purchasing organisation designed to consolidate demand for medicines and other healthcare commodities.
According to him, the initiative would help streamline government procurement while allowing other supply channels to continue operating.
The arrangement is expected to create more predictable demand for healthcare products and provide further support for local manufacturers.
