Senate Places 75% Import Duties On Importation Of Syringes, Needles

The Senate has ordered a hike in importation duties on syringes
and needles into the country and therefore recommended 75 percent
port duties.

This is as the upper chamber mandated full implementation of the
policy on usage of locally manufactured syringes and needles by
federal government owned hospitals and health institutions across
the country.

The two directives were meant to protect local manufacturers,
give them enabling environment to contribute to the revenue base of
the nation and to reduce unemployment.

These mandatory recommendations followed the consideration and
approval of the reports of the Senate Committee on Health presented
by chairman, Sen. Yahaya Oloriegbe (Kwara Central).

According to the chairman, the committee discovered that
majority of the imported syringes and needles are substandard,
unsterile (used and rewashed syringes from Asian continent) hence
endangering the lives, health and safety of Nigerians.

He said “despite several policies of the Federal Government
especially the introduction of 75% import duties on imported
Syringes and Needles to deter importation, the Nigeria Customs
Services has not been able to enforce this effectively, thereby
leading to mass importation of cheap, substandard and unsterile
syringes and needles.

“Importation of syringes and needles is killing local
manufacturers making them to lay off staff and preventing them from
contributing effectively to the economy.

“NAFDAC regulates seven (7) products including Syringes and
Needles. NAFDAC has a 5+5 policy which means at the end of 5 years
the importer must migrate from importation to manufacturing. This
policy is just 2 years in operation hence it has not been applied
to this sector.

” The Federal Ministry of Health lacks policy on the procurement
and utilization of Syringes and Needles by government-owned
Hospitals and agencies. This has led to government-owned hospitals
to sometimes procure and use substandard Syringes and Needles in
their hospitals and medical centres.

“Compulsory requirement for manufacturers to register to
pre-qualify for the World Health Organisation’s certification costs
about $1.5bn. This has been an impediment to local manufacturers
attaining this status and preventing their being patronized by
organisations using donor funds”.

The committee therefore recommended that “the Federal Ministry
of Industry, Trade and Investment should finalise the process of
approval of the Backward Integration Policy(BIP) (for the sector)
by the Federal Executive Council and commence the implementation of
the Policy by 1st August 2021.

That “as a matter of urgency, the Federal Government should
fully implement 75% import duties on the Importation of syringes
and needles and put stringent measures to the defaulters thereby
encouraging local manufacturers and ensuring employment
opportunities. Towards this end, the Nigeria Customs Services
should enforce this policy.

“The Federal Ministry of Health should develop a policy on the
procurement and utilization of Syringes and Needles by government
hospitals and offices by 1st July 2021. That is within six (6)
weeks all Federal Government owned hospitals are to use locally
manufactured Syringes and Needles in order to strengthen local
manufacturing.

“The Federal Ministry of Health should develop and implement a
Policy Guideline that will ensure that all hospitals projects and
programmes funded with the government of Nigeria’s funds to procure
and use Syringes and Needles approved by relevant Nigerian
Regulatory Bodies without a requirement for World Health
Organisation’s pre-qualification.

The Senate also asked syringes and needles manufacturers to take
the advantage of the Central Bank of Nigeria’s Special Intervention
Fund for the Health sector to improve and extend their
capacities.

Recalled that the Medical Device Manufacturers Association of
Nigeria (MDMAN), producers of syringes and needles sought the
intervention of both the Senate Committee on Health and of Industry
Trade and Investment on the implementation of exiting policies
meant to protect local manufacturers.

The association in its petition, had alleged that government at
all tiers were not patronizing local manufacturers but instead
patronize foreign syringes and needles.

President of the Medical Devices Manufacturers Association of
Nigeria (MEDMAN), Mr Akin Oyediran had during interface with the
Senate committees and the Health minister, Dr. Osagie Ehanire and
NAFDAC Director General, Prof. Mojisola Adeyeye said the
implementation of the policy would stop importation of low quality
medical devices that may expose patients to health dangers.

Oyediran explained that the Backward Integration Policy (BIP)
entails Nigerian manufacturers’ right to produce syringes for local
market and can import same to meet local demands if their factories
could not produce enough quantity to satisfy local needs .

He said, “We have the capacity to produce the required syringes
and needles that we need in the country.

“One of the manufacturers in Nigeria, the Jubilee Syringe of
which I am the MD is the largest manufacturers of Syringes in
Africa.

“The local manufacturers are actually the highest supplies of
syringes and needles for hospitals. There is no point in why
government hospitals should use imported syringes when we have
locally manufactured ones.

The Senate has ordered a hike in importation duties on syringes
and needles into the country and therefore recommended 75 percent
port duties.

This is as the upper chamber mandated full implementation of the
policy on usage of locally manufactured syringes and needles by
federal government owned hospitals and health institutions across
the country.

The two directives were meant to protect local manufacturers,
give them enabling environment to contribute to the revenue base of
the nation and to reduce unemployment.

These mandatory recommendations followed the consideration and
approval of the reports of the Senate Committee on Health presented
by chairman, Sen. Yahaya Oloriegbe (Kwara Central).

According to the chairman, the committee discovered that
majority of the imported syringes and needles are substandard,
unsterile (used and rewashed syringes from Asian continent) hence
endangering the lives, health and safety of Nigerians.

He said “despite several policies of the Federal Government
especially the introduction of 75% import duties on imported
Syringes and Needles to deter importation, the Nigeria Customs
Services has not been able to enforce this effectively, thereby
leading to mass importation of cheap, substandard and unsterile
syringes and needles.

“Importation of syringes and needles is killing local
manufacturers making them to lay off staff and preventing them from
contributing effectively to the economy.

“NAFDAC regulates seven (7) products including Syringes and
Needles. NAFDAC has a 5+5 policy which means at the end of 5 years
the importer must migrate from importation to manufacturing. This
policy is just 2 years in operation hence it has not been applied
to this sector.

” The Federal Ministry of Health lacks policy on the procurement
and utilization of Syringes and Needles by government-owned
Hospitals and agencies. This has led to government-owned hospitals
to sometimes procure and use substandard Syringes and Needles in
their hospitals and medical centres.

“Compulsory requirement for manufacturers to register to
pre-qualify for the World Health Organisation’s certification costs
about $1.5bn. This has been an impediment to local manufacturers
attaining this status and preventing their being patronized by
organisations using donor funds”.

The committee therefore recommended that “the Federal Ministry
of Industry, Trade and Investment should finalise the process of
approval of the Backward Integration Policy(BIP) (for the sector)
by the Federal Executive Council and commence the implementation of
the Policy by 1st August 2021.

That “as a matter of urgency, the Federal Government should
fully implement 75% import duties on the Importation of syringes
and needles and put stringent measures to the defaulters thereby
encouraging local manufacturers and ensuring employment
opportunities. Towards this end, the Nigeria Customs Services
should enforce this policy.

“The Federal Ministry of Health should develop a policy on the
procurement and utilization of Syringes and Needles by government
hospitals and offices by 1st July 2021. That is within six (6)
weeks all Federal Government owned hospitals are to use locally
manufactured Syringes and Needles in order to strengthen local
manufacturing.

“The Federal Ministry of Health should develop and implement a
Policy Guideline that will ensure that all hospitals projects and
programmes funded with the government of Nigeria’s funds to procure
and use Syringes and Needles approved by relevant Nigerian
Regulatory Bodies without a requirement for World Health
Organisation’s pre-qualification.

The Senate also asked syringes and needles manufacturers to take
the advantage of the Central Bank of Nigeria’s Special Intervention
Fund for the Health sector to improve and extend their
capacities.

Recalled that the Medical Device Manufacturers Association of
Nigeria (MDMAN), producers of syringes and needles sought the
intervention of both the Senate Committee on Health and of Industry
Trade and Investment on the implementation of exiting policies
meant to protect local manufacturers.

The association in its petition, had alleged that government at
all tiers were not patronizing local manufacturers but instead
patronize foreign syringes and needles.

President of the Medical Devices Manufacturers Association of
Nigeria (MEDMAN), Mr Akin Oyediran had during interface with the
Senate committees and the Health minister, Dr. Osagie Ehanire and
NAFDAC Director General, Prof. Mojisola Adeyeye said the
implementation of the policy would stop importation of low quality
medical devices that may expose patients to health dangers.

Oyediran explained that the Backward Integration Policy (BIP)
entails Nigerian manufacturers’ right to produce syringes for local
market and can import same to meet local demands if their factories
could not produce enough quantity to satisfy local needs .

He said, “We have the capacity to produce the required syringes
and needles that we need in the country.

“One of the manufacturers in Nigeria, the Jubilee Syringe of
which I am the MD is the largest manufacturers of Syringes in
Africa.

“The local manufacturers are actually the highest supplies of
syringes and needles for hospitals. There is no point in why
government hospitals should use imported syringes when we have
locally manufactured ones.