The Manufacturers Association of Nigeria (PMG-MAN) has attributed paucity of foreign exchange to the contributing factors negating local pharmaceutical industry in the country. The Pharmaceutical Manufacturers Group of MAN has expressed concerns prior to their forthcoming 77th Edition of the Nigeria Pharmacy Manufacturers Expo (NPME) scheduled between September 4 and September 5, 2024. GlaxoSmithKline (GSK) discontinued operations in Nigeria in August 2023, ending its 51-year existence in the country, while French pharmaceutical manufacturing company, Sanofi, exited Nigeria in November.
The Chairman, Local Organizing Committee (LOC), NPME 2024, Patrick Ajah, said that for the domestic pharmaceutical industry to progress, a stable exchange rate was essential.
Ajah, a Pharmacist and the Managing Director of May & Baker, said that many companies were also on standby for the implementation and take off of the recently announced Executive Order, removing tariffs and Value-Added Tax (VAT) on pharmacy imports.
The order which introduced zero tariffs, excise duties, and VAT on specialized machinery, equipment and pharmaceutical raw materials is to bolster local production of essential healthcare products.
“The government will need to do certain things to achieve 70 per cent local drug production. The recent fluctuations in the value of the Naira have made it difficult for companies to plan and invest.”
“This is one major reason why multinational companies are leaving. It’s not the fear of subsidy removal. If we didn’t tamper with the currency, all the multinational companies would be here and they would still be making more investments.”
Ajah called for increased government support for the local pharmaceutical industry to produce 70 per cent of the medicines it consumes.
