By Sunny Anderson Osiebe
The Pharmaceutical
Manufacturers Group of the Manufacturers Association of Nigeria
(PMG-MAN) has commended the Senate President, Dr. Abubakar Bukola Saraki
for his intervention
which led the Federal Government to introduce an Import Adjustment Tax
policy last year that has encouraged pharmaceutical industries in the
country to thrive.
The
National President of PMG-MAN, Mr. Okey Akpa, gave the commendation
when he led other national executive members of the association on a
courtesy visit to the Senate President,
Dr. Abubakar Bukola Saraki, in Abuja on Wednesday.
It
could be recalled that last year, when PMG-MAN came to the Senate,
Saraki assured them that the Senate would advocate for reduction in the
prevailing Common External Tariff
(CET) on the importation of pharmaceutical raw materials, to boost
local production of drugs that would enable Nigerians all over the
country have access to cheaper medications.
In a statement
by the Special Assistant to the Senate President on Print Media, Chuks
Okocha, the PMG-MAN chief noted that the intervention of the Senate last
year brought about an import adjustment
tax by the Federal Government which has made local manufacturing of
pharmaceutical products attractive and profitable.
Akpa
said: "When we visited you in June 2016, we brought to your notice a
situation where finished pharmaceutical products were being imported
into the country at zero duty
whereas raw materials and packaging materials were attracting duty
ranging from 5 per cent to 20 per cent. We had intimated you that that
was the surest way to kill local manufacturing.
"Your
Excellency, we want to thank you and the government of the Federal
Republic of Nigeria that government has introduced import adjustment tax
on a key HS Code that has
encouraged pharmaceutical industries to thrive.
"Those
items on those HS Code now attract 20 per cent import adjustment tax
which is in line with extant document of CET. We want to thank you, we
want to thank the Federal
Government of Nigeria and we want to bring to your notice that since
the fiscal policy 2016 came, a lot has happened in our industry, foreign
investment is on the increase and we are receiving enquiries from
foreign investors who now want to invest in Nigeria's
local manufacturing.
"Capacity
utilization is on the increase and we are employing more people
contrary to what it was just before we came to call on you when we were
laying off workers and members
were finalizing plans to close factories. We are optimistic that such
policies as these if sustained will grow this industry," he said.
He
also solicited the support of the National Assembly against increase in
CET which he said is to the disadvantage of pharmaceutical companies in
Nigeria.
Responding,
Saraki noted that it is top priority of the 8th Senate to ensure he
survival and sustainability of pharmaceutical industries in the
country.
The
Senate President pledged the readiness of the 8th Senate to do what
needed to ensure the overall survival and profitability of local
industries in the country.
In
light of this, Saraki set up a technical committee made up of key staff
from his Office and members of PMG-MAN and gave them six weeks to
produce a report on the enabling
laws that are needed to make sure that local pharmaceutical industries
can meet the demands of the entire country.
Saraki
said: "Last year, when you (PMG-MAN) came to the Senate, I assured you
that the Senate would look into advocating for the reduction of this CET
on the raw materials,
so that our local pharmaceutical industries can grow, and Nigerians all
over the country would have access to cheaper medications. We have done
this.
"Now,
our next step on this issue will be to push for the self-sufficiency of
our local pharmaceutical sector. This is because for the safety of our
citizens and our national
security as a nation, Nigeria must begin to take steps to produce the
vaccines and medications that it needs locally, instead of relying on
other countries," he said.
END
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