Angela Onwuzoo
Members of the Society for Pharmaceutical Sales and Marketing of Nigeria have stated that unless the Federal Government tackles the rising inflation, the cost of medicines will remain high.
The sales and marketing professionals noted that it would be difficult if not impossible for the nation’s pharma industry which is import and forex-dependent to thrive without the government bringing down inflation.
Nigeria’s inflation rate increased to 34.19 percent in June 2024, according to data by the National Bureau of Statistics.
Despite executive order on pharmaceutical products, drug prices remain high in Nigeria as pharmacists insist that the exchange rate remains a key factor.
The stakeholders also pointed out that local pharma industries cannot grow and reverse Nigeria’s dependence on imported drugs without the government’s intervention and access to loans with low interest rates and lesser conditions.
The sales and marketing professionals spoke at the SPSMN 2024 induction ceremony and investiture of fellows held recently in Lagos.
The event also featured a pharma sales and marketing award and examined ways the sales and marketing professionals could thrive and break even despite the harsh business environment in Nigeria.
Speaking on the theme, “Pharmaceutical Sales & Marketing in Nigeria: Professionalism and Thriving in Turbulent Times”, the Keynote Speaker, Dr. George Thorpe, said high inflation destroys people’s lives and businesses.
“Running inflation at 30 percent destroys lives and businesses. If your inflation is running at such a high level; you don’t manage it and you don’t care, it will have an impact on price. Then you are wondering why the exchange rate is going up, there is a connection between the two, he said.
Thorpe, who is Chairman of Media Reach Nigeria, however, assured the sales and marketing professionals that they could still survive the turbulent times and grow their businesses profitably if they adopt synergy and also think out of the box.
He blamed the rising inflation in the country on the recklessness of governance by political officeholders.
In his remarks, the Chairman of the occasion and Group Managing Director of Reals Pharmaceutical Limited, Ade Popoola, noted that the pharmaceutical industry had challenges with sales and marketing due to the high cost of operation.
Popoola, a pharmacist, said the economic hardship poses a major challenge for the pharma industry owing to the high cost of living.
“These are challenging periods and challenging periods need innovative solutions.“We must now think outside the box than we used to think to break even”, he said.
Speaking, the President of SPSMN, Tunde Oyeniran, said 27 members were inducted into honorary and regular fellows categories.
Oyeniran said the government must take action to ensure that Nigeria has drug security.
The pharmacist said, “Medicines cannot be subjected to beverages and food items. The pharma industry should not be subjected to what we do regularly with everybody. So, if drugs are expensive, it is because we have tied it to the foreign exchange. 80 percent of what we see on the shelves is not manufactured in Nigeria.
“The component of the remaining 20 percent are 80 percent sourced from outside. So the ones they claim to be manufactured in Nigeria, 80 percent of the content is sourced from outside Nigeria.”
He further noted, “So, you could see that strong nexus between price and the foreign exchange. So, there must be a deliberate policy to support and reduce the cost of operation and the cost of raw materials by the government. It is a deliberate thing. So it’s up to them.
“The government needs to have a long-term plan for health and drug security. The government should also look at the pharmaceutical value chain holistically and work with the professionals to address the problems in the sector.”
Oyeniran who is the Lead Consultant at Ekini White Tulip Consulting Limited said the government needs to provide the healthcare industry access to capital with lower interest rates and lesser conditions.
“They have funds for education and security, so they can have funds for the healthcare industry where people can take a loan and pay over the next 20 years. Then the interest must be kept at unit, three or four percent and you do it over the next 10 to 15 years.
“We were about the same level with India, They have taken over our market because their government deliberately supports the industry interns by encouraging research and support with equipment”, he said.
Oyeniran also stressed the need for Nigerians to embrace health insurance to reduce the burden of out-of-pocket payment for healthcare.
The pharmacist maintained that without the success of the health insurance scheme, Nigerians might not have access to affordable healthcare.
The SPSMN President advised members of the society to reset their attitude to remain relevant in the business amid the economic hardship.
He counselled, “They should try to reduce the cost of distribution using technology and connecting to their clients using social media.
“Reduce leakage and focus on building personal relationships.”
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