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Save the pharmaceutical sector

medicine-exports

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NIGERIA’S pharmaceutical sector is hampered by import dependency and years of economic and infrastructural shocks. The industry is further stifled by the cost-of-living crisis imposed by the petrol subsidy removal and exchange rate liberalisation introduced by the Bola Tinubu government.

To tackle these challenges, the Federal Executive Council has approved Medipool, a purchasing programme that utilises the government’s mandatory procurement powers to make pharmaceuticals more affordable. This initiative seeks to address the ongoing issue of drug availability within the sector’s business ecosystem.

The Coordinating Minister of Health and Social Welfare, Ali Pate, explained, “The scope includes procurement planning, distribution monitoring, supply chain and logistics management, quality assurance, regulatory compliance, as well as ensuring that local manufacturers are supported.”

While the Federal Government has recently exempted pharmaceuticals and raw materials for medicines from import duty, more must be done to cushion the effects of logistics bottlenecks, inflation, and high exchange rates to ensure affordable medicines for all.

Despite the government’s announcement of a stimulus package to revive the pharmaceutical sector in 2023, the industry continues to struggle. The government should incentivise pharmaceutical manufacturers, provide infrastructure support and grants, and encourage technology transfer to foster the development of homegrown pharmaceuticals.

Though these efforts are commendable, the government must follow through with concrete actions, manage potential disruptions, ensure transparent collaboration, and provide ample assurances to stakeholders throughout the pharmaceutical supply chain.

Reports indicate that pharmaceutical companies remain sceptical about the new programme, recalling the traumatic experiences from a similar initiative five years ago. The government must address broader economic conditions to enable pharmaceutical manufacturing to thrive.

Restoring confidence in the sector requires revisiting lessons from the previous procurement pooling programme and engaging manufacturers with clear communication about the new initiative. The government cannot afford to ignore compliance with agreed operational terms this time around.

The high cost of essential and lifesaving drugs prescribed by doctors and other medical professionals means many sick Nigerians lack access to necessary medicines. This creates loopholes for quacks, peddlers of fake and adulterated drugs, and the proliferation of uncertified and unhygienic alternative medicines.

Nigeria’s pharmaceutical sector remains heavily import-dependent, with over 70 per cent of medicines consumed in the country shipped from abroad.

According to the Pharmaceutical Manufacturers Group, local drug production meets less than 30 per cent of Nigeria’s demand.

This over-reliance on imports leaves Nigeria vulnerable to global supply chain disruptions, exchange rate fluctuations, and inflation.

The COVID-19 crisis proved the dangers of such import dependency on medicines and vaccines.

The exit of multinational pharmaceutical firms has further exposed gaps in local production. GlaxoSmithKline’s departure in 2023, after 51 years in Nigeria, was a major blow, leaving a void in the supply of critical medications. Other companies, including Sanofi and Pfizer, have scaled back operations, citing harsh economic conditions, unreliable power supply, and regulatory bottlenecks.

The National Agency for Food and Drug Administration and Control estimates that about 17 per cent of drugs in circulation in Nigeria are fake or substandard.

These counterfeit medicines not only fail to treat illnesses but also pose severe health risks, including organ damage and death. NAFDAC and similar agencies should intensify their crackdown on this menace while fast-tracking assessments and approvals for genuine manufacturers.

The consequences of unaffordable drugs are dire. Patients with chronic conditions such as diabetes, hypertension, and HIV/AIDS are often forced to ration their medications or abandon treatment altogether. A 2023 survey by Nigeria Health Watch revealed that nearly 60 per cent of Nigerians struggling with chronic illnesses have skipped doses due to cost.

The COVID-19 pandemic exposed Nigeria’s dangerous dependence on drug imports. The country cannot afford to wait for another health emergency before taking decisive action.

The government should increase budgetary allocation to the health sector from the current 5.0 per cent.

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