HEPAN calls for reduction in NAFDAC’s GMP certification costs

NIGERIA—The Association of Healthcare Equipment and Allied Products Providers of Nigeria (HEPAN) has made an urgent appeal to the National Agency for Food and Drug Administration and Control (NAFDAC) to consider lowering the cost of Good Manufacturing Practice (GMP) certificates for medical devices.

According to HEPAN, reducing these certification costs is a vital step toward decreasing the overall cost of medical devices in Nigeria, ultimately benefiting both healthcare providers and patients.

In a statement, Alhaji Mustapha Husain Falaki, the Board Chairman of HEPAN, emphasised that reducing the cost of GMP certification is not just beneficial but essential.

He highlighted that lower certification costs would make medical devices more affordable in the Nigerian market, thus facilitating access to basic medical services for healthcare institutions nationwide.

He argued that this move would significantly enhance the availability and affordability of essential medical equipment, which is crucial for improving healthcare delivery nationwide.

Furthermore, the association expressed its appreciation for President Bola Ahmed Tinubu’s recent legislative actions to curb the rising cost of medical services in Nigeria.

Specifically, President Tinubu signed into law an Executive Order designed to bolster local production of medical and healthcare products.

This legislation comes at a critical time when Nigeria is grappling with record-high inflation rates that have severely impacted disposable incomes, making healthcare increasingly unaffordable for many citizens.

Dr. Ifeanyi Nwankwo, the National President of HEPAN, also weighed in on the significance of the Executive Order. He praised the initiative, stating that it would profoundly impact reducing healthcare costs for Nigerians.

Additionally, Dr. Nwankwo pointed out that the order can potentially create many jobs, particularly for the country’s unemployed youth, by stimulating local manufacturing industries.

The new law introduces several key measures to reduce production costs for local manufacturers.

These measures include eliminating tariffs, excise duties, and Value-Added Tax (VAT) on specified machinery, equipment, and raw materials used in the production of medical and healthcare products.

Dr. Nwankwo explained that by lowering these financial barriers, the law would enhance the competitiveness of local manufacturers, enabling them to produce critical health products more efficiently.

These products include Active Pharmaceutical Ingredients (API), excipients, syringes, needles, Long-Lasting Insecticidal Nets (LLIN), and Rapid Diagnostic Kits, among others.

Additionally, the law establishes market-shaping mechanisms, such as a framework for contracts and volume guarantees, designed to encourage local manufacturing.

These mechanisms are expected to create a more stable and predictable market environment, thereby fostering growth in the local production sector and ensuring a steady supply of essential healthcare products.