FG Advances Local Pharma Drive With $2bn Financing Commitments
Dr. Nafisat Makinɗe
The Federal Government is advancing efforts to expand pharmaceutical manufacturing in Nigeria, with about $2 billion in financing commitments under a government healthcare initiative and a target of producing at least 70% of essential healthcare products locally by 2030.
The development was contained in a statement signed by Ado Bako, Assistant Director, Information and Public Relations, Federal Ministry of Health and Social Welfare, following remarks by the Minister of State for Health and Social Welfare, Dr. Iziaq Adekunle Salako, at the eighth Nigeria Pharma Manufacturers Expo in Lagos on Monday.
Salako said the financing commitments were secured under the Presidential Initiative to Unlock the Healthcare Value Chain (PVAC) at single digit interest rates, with about 50 Nigerian health companies in advanced discussions for funding. He said the initiative was intended to increase domestic production of medicines, vaccines, diagnostics and other critical health products.
The minister said disruptions to global supply chains during the COVID 19 pandemic had underscored the risks of relying on external suppliers for essential medical products. He added that 87 local manufacturers were benefiting from a presidential executive order providing zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients and excipients across almost 1,000 Harmonised System codes.
“Our conversation can no longer be limited to whether we can access medicines when global supply chains are functioning. The more fundamental question is whether we can produce what our people need when those supply chains are disrupted,” Salako said.
He said the government was also working to expand local production of active pharmaceutical ingredients, vaccines, biologics and diagnostic products, including through the NIPRD API Capacity Building and Concept Production Centre. Salako also called for greater investment in pharmaceutical research and development and said Medipool, Nigeria’s national group purchasing organisation for essential medicines and medical commodities, would aggregate procurement and negotiate bulk purchases to create more predictable demand for local manufacturers.
Salako urged pharmaceutical manufacturers, researchers and investors to use the African Continental Free Trade Area to expand regional markets and strengthen pharmaceutical production across Africa, saying Nigeria’s pharmaceutical capacity would depend on investment, research, manufacturing and stronger regional market integration.