Nigeria Healthcare Industrialisation: FG Targets Local Production
By DAYO ADESULU
Nigeria Healthcare Industrialisation has received a boost from a significant policy shift aimed at transforming Nigeria’s health sector, as the Federal Government reaffirms its commitment to reducing dependence on imported healthcare products, curbing outbound medical tourism, and creating sustainable jobs.
The disclosure came on Sunday in Abuja from Dr. Abdu Mukhtar, National Coordinator of the Presidential Unlocking Nigeria Healthcare Value-Chain Initiative. He revealed that the initiative, which was launched under the current administration, is designed to unlock the full potential of Nigeria’s healthcare value chain and drive industrialisation in the sector.
Presidential Executive Order Removes VAT on Medical Supplies
Mukhtar, represented by Dr. Nasir Ahmed at the launch of the Impact Healthcare Initiative, said one of the landmark achievements under the initiative was the signing of a Presidential Executive Order in July 2024, which eliminates Value Added Tax (VAT) on raw materials and medical equipment manufacturing supplies. This policy aims to lower local production costs and attract private investment.
He said:
“As part of the Presidential Initiative for Unlocking the Nigeria Healthcare Value Chain, we have three clear mandates:
- Boost local manufacturing of healthcare products
- Reduce outbound medical tourism
- Create high-quality jobs in the Nigeria Healthcare Sector.”
According to Mukhtar, the goal is to develop a self-reliant and efficient healthcare system, leveraging favourable policies to position the private sector as a driver of growth in manufacturing, service delivery, and job creation.
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Aligning Public and Private Sector Efforts
Mukhtar also lauded the strategic direction of Professor Muhammad Ali Pate, the Coordinating Minister of Health and Social Welfare. Under his leadership, the government has implemented a blueprint that synchronizes efforts between public institutions and private sector operators.
He emphasized:
“Our role as government is to create the enabling environment, but it is the private sector that must unlock the true value across the health ecosystem.”
He added that the long-term vision of the Nigeria Healthcare is to position Nigeria as a hub for quality healthcare delivery not only within ECOWAS but across Africa.
Impact Healthcare Group Pushes for Unified Private Sector
During the event, Ayodele Cole Benson, Convener of the Impact Healthcare Group, spotlighted the inefficiencies of Nigeria’s fragmented private healthcare system. He cited successful models like South Africa’s Life Healthcare, which expanded from four hospitals in 1998 to a 65-hospital network with over 6,500 beds.
Benson remarked:
“We lose over $1 billion annually to outbound medical tourism. I recently had to accompany someone to Cairo, and before that, it was Israel. This capital flight must stop.”
According to him, the Impact Healthcare Network, which currently operates in both northern and southern regions of Nigeria, is working to unify healthcare practices, reduce costs, and expand access to high-quality treatment nationwide.
He urged the government to integrate private healthcare providers into public health schemes like Delta State’s free healthcare for children under five and the elderly, which currently exclude private hospitals.
Senate Committee Backs Nigeria Healthcare Industrialisation
Backing the initiative, Senator Samaila Kaila, Vice Chairman of the Senate Committee on Health (Tertiary and Secondary), pledged legislative support. He stated:
“My chairman, colleagues, and I will wholeheartedly support initiatives like this. We are also fortunate to have a president committed to private-sector-led growth and a minister with unrivalled expertise.”
He said the government’s alignment with the private sector offers a rare window of opportunity to transform Nigeria’s healthcare landscape for the better.
Conclusion
The Federal Government’s strategy for Nigeria Healthcare Industrialisation is more than just a policy framework — it’s a comprehensive blueprint aimed at ensuring affordable, accessible, and high-quality healthcare for Nigerians. With coordinated efforts between public institutions and private sector players, the country is poised to reduce capital flight, generate employment, and eventually become a continental hub for medical services.
