Angela Onwuzoo
The Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria has said except the persistent depreciation of the Naira against major foreign currencies was addressed, President Bola Tinubu’s Executive Order on pharmaceuticals alone cannot boost local drug production.
Although the PMG-MAN acknowledged the benefits of the order, it, however, stated that the most crucial factor for the success of the domestic pharmaceutical industry is a stable exchange rate.
The drug manufacturers maintained that unless the value of the Naira was fixed, achieving 70 per cent of local drug manufacturing would be impossible irrespective of the order.
The group noted that the Federal Government must begin to implement the order to avoid worsening the soaring hikes in drug prices.
Recall that in June, the Coordinating Minister of Health and Social Welfare, Prof Ali Pate, said that Tinubu signed an executive order to increase local production of healthcare products like pharmaceuticals, diagnostics, and devices such as needles and syringes, biological and medical textiles, among others.
The order, which will be implemented by agencies such as the Nigeria Customs Service, National Agency for Food and Drug Administration and Control, Standard Organisation of Nigeria, and the Federal Inland Revenue Service, would grant special waivers and exemptions for the products for two years.
Pate on his X account, formerly Twitter, noted, “In a transformative move to revitalize the Nigerian health sector, His Excellency President Bola Ahmed Tinubu, GCFR @officialABAT, has signed an Executive Order aiming to increase local production of healthcare products (pharmaceuticals, diagnostics, devices such as needles and syringes, biologicals, medical textile, etc.).”
The immediate trigger of the current instability of the Naira has been linked to the decision of the Tinubu administration to float the national currency through the elimination of the multiple exchange regime, which left the naira at the mercy of market forces.
Speaking in Lagos recently ahead of the forthcoming 7th Edition of Nigeria Pharma Manufacturers Expo, slated for 4th to 5th September 2024,
Chairman of the Local Organising Committee, Patrick Ajah, urged the Federal Government to provide a timeline for the implementation of the executive order.
Ajah said the government would need to do certain things to achieve 70 per cent of local drug production, lamenting that the recent fluctuations in the value of the Naira have made it difficult for companies to plan and invest.
The pharmacist, who is the Managing Director of May&Baker Nigeria Plc, noted that it was not enough to make an executive order but there must be a timeline for implementation.
Ajah warned that delays in the implementation of the order by the Federal Government agencies involved could lead to drug shortages that the order seeks to address by boosting local manufacturing of medicines and reducing importation.
He also emphasised the need for the government to do a follow-up and ensure the full implementation of the order.
“Nobody has engaged us in the process. Let me be honest, if the government does not ensure the implementation of this, it can turn around to be negative. Many companies are waiting for the implementation.
“If we keep delaying the things that companies should have placed orders for, there will be scarcity. And if the implementation doesn’t start immediately, we’ll have a situation where you do not know where we’re going.
“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,” the pharmacist stated.
Expressing worry about the negative impact of foreign exchange scarcity on the industry, Ajah disclosed that many companies are waiting to see if the recently announced executive order will be implemented before placing import orders.
He called for increased government support for the local pharmaceutical industry, stressing that with the right backing, Nigeria can produce 70 per cent of the medicines it consumes.
Giving insight into the Expo, Executive Secretary of PMG-MAN, Frank Muonemeh, urged the government to provide support to the pharmaceutical sector similar to that which had been provided to other sectors, such as cement and petroleum.
Muonemeh expressed optimism that Nigeria could achieve the goal of producing 70 per cent of its medicines with the right government support, adding that, increased exports from the domestic pharmaceutical industry would also help to alleviate the country’s foreign exchange challenges.
On the 2024 Edition of NPME, with the theme “40 Years of Advocacy: Fostering Partnership and Innovation to Unlock the Pharma Manufacturing Value Chain in Nigeria, Central & West Africa”, the pharmacist said their ambitious goal seeks to reverse the country’s dependency on imported medicine from 70 per cent to 70 per cent locally produced.
He said the 7th NPME 2024 is the flagship expo, and the largest pharmaceutical manufacturing exhibition in Central and West Africa, organised by PMG-MAN and partners, GPE India.
“Experts predict that the Nigerian pharma space would be the next frontier for smart investment and trade, with great but largely untapped potential to contribute to national and regional development.
“To unlock this potential, the group organises a biennial Pharma Expo and Exhibition, focusing on the latest pharma technology, machinery, equipment, Active Pharmaceutical Ingredients, and showcasing locally manufactured medicines, diagnostics, and consumables, he said.”
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