The Centre for the Promotion of Private Enterprise (CPPE) applauds the recent Executive Order eliminating import duties, VAT, and excise duty on pharmaceutical raw materials, intermediate products, and medical diagnostic equipment. These fiscal measures are set to enhance domestic pharmaceutical production, reduce medication costs, improve healthcare access, and create jobs, revitalizing the pharmaceutical industry.
Targeted fiscal policies can effectively address supply-side challenges, crucial for combating current inflation driven by supply constraints. Boosting production through these measures is a key step towards this goal.
In the statement signed by the CPPE Boss, Dr Muda Yusuf recommends extending similar fiscal measures to other sectors, such as agriculture, energy, iron, and steel, to tackle food inflation, promote energy security, and support the construction industry. Additionally, fiscal protection for domestic petroleum refineries is essential to conserve foreign exchange and encourage backward integration.
In an era of global economic nationalism, strengthening domestic production capabilities across all sectors is imperative. Fiscal policies have proven more impactful on the real sector than monetary policies, necessitating protection and incentives for sustainable investment.
CPPE also commends the Central Bank of Nigeria (CBN) for eliminating the Price Verification System Portal, which duplicated Nigeria Customs Service functions. Ongoing engagement with the private sector for evidence-based feedback on monetary policy is encouraged.
Identifying and addressing overlapping regulatory functions that hinder investments is critical. Regulatory overlaps exist among institutions like the Federal Ministry of Environment, NESREA, and others, causing unnecessary financial burdens for investors.
In logistics, multiple regulatory bodies contribute to complexities, underscoring the need for streamlined operations to facilitate investment.
Finally, CPPE urges the effective implementation of Executive Orders 003 and 005, which prioritize local manufacturers and content in public procurement. Compliance by MDAs is essential for boosting domestic production and reforming the economy.
