RISING COST OF ESSENTIAL DRUGS
The authorities must do more to bring down the cost of drugs
In June this year, President Bola Tinubu signed an executive order to increase local production of healthcare products, including pharmaceuticals, diagnostics, devices such as needles and syringes, among others. But the order has had little effects on the prices of pharmaceutical products as drug prices remain high. It is therefore heartwarming that the Federal Ministry of Health and Social Welfare has finalised an executive order that seeks zero Value Added Tax (VAT) and excise duties on pharmaceutical products and medical devices. “This is a significant milestone for our healthcare settings. By implementing these tax relief measures, we are not only supporting local manufacturers but also making essential medicines more affordable for millions of Nigerians”, said spokesman of the ministry, Alaba R. Balogun.
While stakeholders await the order with hope that it would serve the intended purpose, the Pharmaceutical Society of Nigeria (PSN) and the Association of Pharmaceutical Importers of Nigeria (APIN) have at different times made suggestions on the way forward. In 2013, Nigeria had agreed to abide by the recommendation of an Economic Community of West Africa (ECOWAS) committee that drug importation within the sub-region should attract a zero per cent duty. Against the background that neighbouring African countries are operating this zero-tax regime plus lower port charges on drug importation, we believe the federal government must review all existing policies that impinge on healthcare delivery in Nigeria.
The main challenge of the country over the years has been the inability to ensure that our citizens, especially rural dwellers have access to basic primary health care. And with the high cost of essential drugs in the market, it is obvious that the lives of many poor Nigerians are greatly endangered. We therefore urge the president to direct the relevant authorities to halt all counter-productive policies so that enough drugs and medicament could be made available for citizens who need them at affordable prices. And going by provisions of section 17 of our Constitution, the government is obliged to improve the welfare of Nigerian citizens by ensuring that they have access to adequate medical and health facilities.
As things stand, the most effective way of ensuring that quality health care services are effectively delivered to majority of Nigerians is by allowing the public to have access to essential drugs in the market at affordable prices. Without that, preventable diseases that are easily treated will continue to kill in Nigeria. By allowing the public unfettered access to essential drugs at affordable prices, some of the billions spent on medical tourism every year will also be saved. To the extent that health is wealth, many countries have indeed built their economies around healthcare delivery systems.
While we are not opposed to the revenue generation drive of the current administration, authorities in the health sector must do away with policies that run contrary to the World Trade Organisation’s (WTO) recommendation of not more than 5 per cent duty on medicament as a way of fast tracking the achievement of global vision of affordable universal healthcare and eliminating diseases. Where health is absent, wealth is useless.
