The Federal Government has granted pharmaceutical manufacturers ₦24 billion in tax waivers between 2025 and 2026 to boost local medicine production and reduce Nigeria’s dependence on imported drugs.

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 tax incentives were introduced under a presidential executive order signed in 2024 to encourage domestic production of medicines, medical equipment and other essential healthcare products.

He also revealed that the government had secured 12 technology-transfer agreements and established a prospective investment pipeline worth more than $5 billion.

“We have 12 technology-transfer agreements and a prospective investment pipeline exceeding $5 billion,” he said.

According to the minister, the government’s priority is to convert the proposed investments into operational factories and businesses capable of supplying essential healthcare products.

“Our task is to help those prospective investments become operating businesses that supply safe, effective and affordable products and create opportunities for Nigerians,” he added.

Pate disclosed that 10 factories and manufacturing lines had been commissioned under the government’s healthcare industrialisation programme, including six in 2026.

The facilities produce medicines, rapid diagnostic tests, long-lasting insecticidal nets and medical oxygen.

He attributed the expansion to the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), coordinated by Abdu Mukhtar.

Also speaking, 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 data from the Pharmaceutical Group of the Manufacturers Association of Nigeria and the National Agency for Food and Drug Administration and Control (NAFDAC) also indicated an increase of about 10 per cent in the number of active local pharmaceutical companies.

Meanwhile, Pate said NAFDAC was strengthening measures to tackle falsified medicines.

He also disclosed that the government was working to operationalise Medipool, a group purchasing organisation designed to consolidate government demand for medicines and other healthcare supplies while allowing existing supply channels to continue operating.

The initiative is expected to make demand more predictable and create a more stable market for local manufacturers.

President Bola Tinubu signed the executive order in July 2024, granting exemptions from tariffs, excise duties and value-added tax on specified pharmaceutical machinery, equipment and raw materials.

The presidency described the measure as a major healthcare reform aimed at attracting investment, improving the competitiveness of local manufacturers and reducing the cost of pharmaceutical products.

At the eighth Nigeria Pharma Manufacturers Expo in Lagos in September 2026, Salako said the government was targeting at least 70 per cent local production of essential healthcare products by 2030.

He disclosed that 87 manufacturers were benefiting from zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients and other production materials.

The minister further revealed that PVAC had secured approximately $2 billion in financing commitments at single-digit interest rates, with about 50 Nigerian healthcare companies in advanced discussions for funding.

He said expanding domestic production would strengthen Nigeria’s pharmaceutical industry and protect the country’s medicine supply against disruptions in international supply chains.

Salako stressed the need for Nigeria to move beyond the production of finished medicines to manufacturing active pharmaceutical ingredients, vaccines, diagnostic tests and other essential healthcare supplies.

He identified research, innovation, regulatory cooperation and access to regional markets as critical areas for development, noting that further expansion would depend on sustained investment, access to financing and manufacturers’ ability to meet quality standards.

The 2026 Nigeria Health Sector Joint Annual Review, held under the theme “Make the Data Count”, brought together federal and state government officials, development partners and other stakeholders to assess progress under the Nigeria Health Sector Renewal Investment Initiative.

The initiative adopts a sector-wide approach to strengthening coordination, healthcare financing and accountability in service delivery.