The Manufacturers Association of Nigeria’s Pharmaceutical Manufacturers Group (PMG-MAN) lamented the lack of foreign exchange in the nation on Sunday, claiming it had a detrimental impact on the nation’s pharmaceutical sector.

They linked some international pharmaceutical companies’ withdrawal from Nigeria to changes in currency rates. During a press conference in Lagos regarding the upcoming seventh edition of the Nigeria Pharma Manufacturers Expo (NPME), scheduled for September 4 and 5, the group brought up the issues.

Within the last year, a few international pharmaceutical companies have left the nation, including Sanofi Nigeria Ltd. and GlaxoSmithKline. After 51 years of operation, GlaxoSmithKline (GSK) ceased operations in Nigeria in August 2023, and Sanofi, a French pharmaceutical manufacturer, left the country in November.

A stable exchange rate is necessary for the domestic pharmaceutical industry to grow, according to Patrick Ajah, chairman of the NPME 2024 local organizing committee.

Managing director of May & Baker and pharmacist Mr. Ajah said numerous businesses are also prepared to execute and withdraw the newly announced Executive Order.

An Executive Order eliminating duties and value-added tax (VAT) on pharmaceutical imports was signed by President Bola Tinubu on June 29. In order to support local production of vital healthcare items, the directive imposes zero tariffs, excise taxes, and VAT on specialized machinery, equipment, and pharmaceutical raw materials.

The directive is still inactive.

With the correct assistance, he claims Nigeria can generate 70% of the medications it uses. He gave the example of India, stating that the nation fostered its own pharmaceutical industry and that it is now well-known for producing drugs.

Mr. Ajah claimed that although Nigeria was capable of producing a wide range of medications locally, many businesses lacked the funding necessary to build new facilities or modernize existing ones.

He claimed that the difficulty was made worse by the naira’s recent depreciation. He demanded a decrease in interest rates, arguing that the existing rates—which sometimes reach 30 percent—provide a significant impediment to business investment.

According to Frank Muonemeh, the executive secretary of PMG-MAN, forty percent of the medications used in the nation are currently produced by local pharmaceutical companies.

On the other hand, he advocated for government-local business collaborations, the kind that were extended to other sectors of the economy like petroleum and cement production.

Strong local pharmaceutical production would bolster national security, Mr. Muonemeh emphasized. Furthermore, he claimed that India prioritized its domestic sector during the COVID-19 epidemic and encouraged the federal government to adopt a similar strategy, using the country’s medicine production scenario as an example.

According to him, the exhibition’s audacious objective was to push Nigeria toward medication security and self-sufficiency in an effort to end the nation’s reliance on foreign imports.

He claims that in addition to removing obstacles to healthcare access, PMG-MAN members make major contributions to the growth of the country through employment, taxation, and other activities.

(NAN)