By Chigbu Nwaobia
Nigeria’s pharmaceutical industry is on the cusp of a major transformation, with projections indicating a five fold expansion to $10 billion over the next five years.
This growth is driven by significant local and foreign investments aimed at boosting local manufacturing, reducing reliance on imports, and enhancing drug security.
Local Manufacturing Takes Center Stage
The Association of Community Pharmacists of Nigeria (ACPN) confirms that local manufacturers, including prominent Nigerian investors, are building Active Pharmaceutical Ingredient (API) plants and establishing manufacturing plants with investments running into tens of millions of dollars. Foreign investors are also establishing manufacturing plants, reshaping the sector and enhancing Nigeria’s drug security
Key Players and Investments
Companies like KCHAqua; Codix Healthcare; Emzor, and Jawa Pharm are leading the charge, with recent investments in local manufacturing facilities. KCHAqua is set to manufacture tablets, capsules, dry powder and liquid dosage forms in its south east plant operation; Codix Healthcare’s factory produces invitro-diagnostic kits and medical consumables, while Emzor’s specialized Cephalosporin plant is a significant addition to its ultra-modern factory. Jawa Pharm’s factory-site produces beta-lactam range of anti-infectives
The Chief Executive Officer of KCHAqua Pharmaceuticals Limited, Pharm Chris Ukah, says that the new plant in Abia State, south east Nigeria, is a multi-million dollar facility that will be equipped with state-of-the-art equipment and technology to ensure high-quality products that meet international standards.
Similarly, the Managing Director of Emzor Pharmaceutical Industries Limited, Mr. Obadiah Onyeife, revealed that the company has invested over $23 million in its API plant in Ogun State, which is expected to produce 400 metric tonnes of APIs annually. These investments are expected to reduce Nigeria’s reliance on imported medicines and APIs as well as create jobs.
Former National Secretary of PSN, Pharm. Olugbenga Falabi, CEO of KCHAqua Consortium, Pharm Chris Ukah, PCN Registrar, Pharm. Ahmed Babashehu, KCHaqua Consortium Project Advisor and Former President of PSN, Pharm Ahmed Yakasai and Chairman, PSN Abia State, Pharm Emmanuel Okafor
Government Support and Incentives
The Nigerian government has demonstrated its commitment to promoting local pharmaceutical production through various incentives and policies.
The exemption of 87 pharmaceutical companies from import taxes on critical raw materials and production inputs is expected to stimulate local production and reduce costs.
The government has also established the Nigeria Drug and Vaccines Bill, which provides a framework for the development of the pharmaceutical industry. Additionally, the government has introduced the National Health Insurance Scheme, which is expected to increase demand for locally manufactured pharmaceutical products
Challenges and Opportunities
Despite progress, Nigeria’s pharmaceutical sector still faces challenges, including inadequate infrastructure, logistics, and skilled workforce. Regulatory hurdles and counterfeit products also pose concerns.
However, these challenges present opportunities for innovation and growth, particularly in local API production, pharmaceutical manufacturing, and research and development.
The sector also faces competition from imported pharmaceutical products, which dominate the market. However, the government’s initiatives and investments in local manufacturing are expected to reduce the country’s reliance on imports and promote local production.
A Model for Africa
Nigeria’s pharmaceutical industry has the potential to become a model for Africa, leveraging the African Continental Free Trade Agreement (AfCFTA) to expand trade and export pharmaceutical products across the continent With over 150 registered pharmaceutical manufacturers, including WHO-certified for Good Manufacturing Practice (GMP), Nigeria is poised to become a hub for pharmaceutical production in West Africa.
The industry’s growth is expected to create jobs, stimulate economic growth, and improve healthcare outcomes. The government’s commitment to promoting local pharmaceutical production is expected to attract more investments and drive the sector’s growth.
Conclusion
Nigeria’s pharmaceutical industry is on the path to significant growth, driven by local and foreign investments, government support, and a commitment to local manufacturing. Addressing infrastructure constraints and regulatory hurdles will be crucial to unlocking the sector’s full potential. With the right policies and investments, Nigeria can become a major player in the global pharmaceutical market, enhancing healthcare outcomes and driving economic growth.
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