The Nigerian government said it has granted N24 billion in tax waivers to pharmaceutical manufacturers between 2025 and 2026 as part of efforts to increase local production of medicines and reduce dependence on imported healthcare products.

The Coordinating Minister of Health and Social Welfare, Muhammad Pate, disclosed this on Tuesday at the 2026 Nigeria Health Sector Joint Annual Review (JAR) in Abuja.

Mr 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 exceeding $5 billion in the healthcare manufacturing sector.

According to him, the government is working to ensure that the proposed investments translate into operational businesses capable of producing affordable healthcare products and creating employment opportunities.

“The Executive Order signed by Mr President in 2024 has supported N24 billion in tax waivers for pharmaceutical manufacturers in 2025–2026,” he said.

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

Mr Pate said the government’s priority was to translate the prospective investments into actual manufacturing activities.

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

Expansion of local manufacturing

Mr Pate said 10 factories or manufacturing lines had been commissioned under the government’s healthcare industrialisation programme, including six in 2026.

He explained that 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 (PVAC), coordinated by Abdu Mukhtar, to the government’s efforts to expand domestic manufacturing.

Also speaking at the review, the Minister of State for Health and Social Welfare, Iziaq Salako, reported an increase in local pharmaceutical production.

Mr Salako said locally manufactured medicines accounted for 50 per cent of Nigeria’s pharmaceutical market in 2026, compared with 30 per cent in 2023.

He said figures from the Pharmaceutical Group of the Manufacturers Association of Nigeria and the National Agency for Food and Drug Administration and Control (NAFDAC) also showed an approximately 10 per cent increase in the number of active local pharmaceutical companies.

He said the improvements reflected ongoing efforts to strengthen domestic manufacturing and reduce Nigeria’s dependence on imported healthcare products.

Meanwhile, Mr Pate said NAFDAC was strengthening regulatory measures against falsified medicines to support the development 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 organise government procurement while allowing other supply channels to continue operating.

The arrangement is intended to create more predictable demand for healthcare products and support local manufacturers.

Background

Nigeria has been working to expand domestic pharmaceutical manufacturing amid concerns about dependence on imported medicines and disruptions to international supply chains.

In July 2024, President Bola Tinubu signed an executive order introducing fiscal incentives to encourage local production of medicines and other healthcare products.

The order provided relief from tariffs, excise duties and Value Added Tax (VAT) on specified pharmaceutical machinery, equipment and raw materials used in manufacturing.

In May 2025, PREMIUM TIMES reported that the presidency had identified the executive order as one of the government’s major health sector reforms aimed at attracting investment and reducing the cost of pharmaceutical products.

The government said the incentives were designed to make local manufacturers more competitive and encourage increased production of essential healthcare products.

In September 2026, PREMIUM TIMES also reported that the federal government was targeting at least 70 per cent local production of essential healthcare products by 2030.

Speaking at the 8th Nigeria Pharma Manufacturers Expo in Lagos, Mr Salako said the government was using financing and tax incentives to strengthen domestic manufacturing.

He disclosed that 87 local manufacturers were benefiting from the presidential executive order granting zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients and other production materials.

Mr Salako also said PVAC had secured about $2 billion in financing commitments at single-digit interest rates, with approximately 50 Nigerian healthcare companies in advanced discussions for funding.

He explained that increasing local production would help strengthen medicine security and reduce the country’s vulnerability to disruptions in international supply chains.

Sustaining local production

Despite the reported progress, Nigeria’s ambition to expand local pharmaceutical manufacturing will depend on sustained investment, access to financing and the ability of manufacturers to produce medicines that meet required quality standards.

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At the September 2026 pharmaceutical manufacturers’ expo, Mr Salako emphasised the importance of expanding production beyond finished medicines to include active pharmaceutical ingredients, vaccines, diagnostics and other essential health commodities.

He also identified research, innovation, regulatory cooperation and access to regional markets as important areas for developing the industry.

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

The initiative is being implemented through the Sector-Wide Approach, which seeks to improve coordination, financing and accountability in healthcare delivery.

The Nigerian government says it has provided 80,906 free caesarean sections under its emergency obstetric care programme, alongside a 22 per cent reduction in deaths from obstetric emergencies in participating health facilities.

The Coordinating Minister of Health and Social Welfare, Muhammad Pate, disclosed this on Tuesday at the 2026 Nigeria Health Sector Joint Annual Review (JAR) in Abuja.

Mr Pate said nearly 100,000 free emergency obstetric and newborn healthcare services had been delivered since the programme was announced two years ago.

According to him, the services included 80,906 caesarean sections, approximately 9,100 newborn services and 6,059 repairs for vesicovaginal fistula, a condition that can cause continuous leakage of urine following childbirth injuries.

“Two years after we announced the free emergency obstetric care programme, almost 100,000 services have been delivered,” he said.

“Deaths from obstetric emergencies have fallen by 22 per cent in participating facilities. These are among the highest-risk maternal cases.”

The programme is part of the government’s efforts to reduce preventable maternal and newborn deaths by improving access to emergency healthcare, particularly for women who cannot afford treatment.

A caesarean section is a surgical procedure used to deliver a baby through an incision in the abdomen and uterus, typically when healthcare providers determine it’s safer for the mother, baby, or both.

Despite its necessity in many cases, the high cost of a C-section in Nigeria has long been a major barrier, preventing many women from accessing this critical care during childbirth.

Expansion of emergency maternal healthcare

Mr Pate said the government had also strengthened emergency obstetric and newborn healthcare services by providing equipment to more than 300 secondary healthcare facilities and over 500 primary healthcare centres (PHCs).

He explained that the secondary facilities were equipped to provide comprehensive emergency obstetric and newborn care, while the PHCs were supported to deliver basic emergency services.

“The facilities, staff and referral services must work together if we are to reduce preventable deaths,” he said.

The minister also highlighted progress under the Maternal and Newborn Mortality Reduction Innovation Initiative (MAMII), which targets communities with high maternal and newborn mortality burdens.

He said the initiative had mapped and linked 750,000 pregnant women to functional health facilities.

According to him, emergency transport services operated in 171 of the 172 local government areas covered by MAMII and transported 104,566 women and newborns.

Across the wider referral network, he said 1,053 transport assets and 9,050 community drivers had transported 168,571 patients.

“These arrangements are connecting women and newborns to the care they need,” he said.

Free caesarean sections

In November 2024, PREMIUM TIMES reported that the federal government had announced free caesarean sections for eligible pregnant women as part of efforts to reduce maternal and newborn deaths.

The intervention was initially piloted in August 2024 in four healthcare facilities in Kano and Akwa Ibom states before expanding to other locations.

By April 2025, Mr Pate announced that more than 4,000 women had benefited from free caesarean sections through the programme.

During the same period, the National Health Insurance Authority (NHIA) disclosed that the intervention had commenced in more than 100 hospitals across Nigeria’s six geopolitical zones.

NHIA explained that eligible women who could not afford the procedure could receive it free of charge after an assessment by the hospital’s social welfare team.

It said beneficiaries were required to provide their National Identification Number, which could be presented before or after admission.

The programme involves federal, state, private and faith-based hospitals, with the NHIA coordinating payments for eligible services.

In September 2026, the government also introduced incentives under MAMII to encourage greater use of maternal and newborn healthcare services and address barriers preventing women from receiving timely care.

Maternal deaths remain a concern

Despite the reported improvements, maternal and newborn deaths remain major public health concerns in Nigeria.

At the review, the National Coordinator of the Sector-Wide Approach Coordination Office, Muntaqa Umar-Sadiq, identified shortages of skilled health workers and gaps in Comprehensive Emergency Obstetric and Newborn Care (CEmONC) services as challenges affecting healthcare delivery.

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“Investments in CEmONC facilities, infrastructure and equipment must be matched with adequate numbers of skilled health workers. We must also modernise our tertiary health institutions,” he said.

Mr Umar-Sadiq stressed the need to improve the deployment and retention of skilled health workers, particularly in facilities providing emergency obstetric and newborn care.

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

The initiative is being implemented through the Sector-Wide Approach, which seeks to improve coordination, financing and accountability in healthcare delivery.