Hope rises as Nigerian pharmaceutical industry sees growth

In spite of the fact that the Nigerian pharmaceutical industry still lags behind peers around the world, the sector has witnessed note-worthy growth in recent times that has taken it a step closer to becoming internationally competitive.

Nigeria’s drug makers are touted as uncompetitive as many of them still remain without the World Health Organisation (WHO) pre-qualification necessary for international competition. Currently, Indian pharma firms supply 70 percent of raw materials, semi-finished and finished products (drugs) consumed in Nigeria. Experts attribute the trend to absence of sufficient petrochemical companies that are supposed to produce compounds needed to produce drugs; imports, and poor product packaging, among others.

But the situation is gradually changing as manufacturers are beginning to invest and expand capacity to meet the requirements. Within the last four years, more than $44 million was invested by about 14 members of Pharmaceutical Group of the Manufacturers Association of Nigeria (PG-MAN) into factory expansion and upgrade of manufacturing processes, said Bunmi Olaopa, president, PG-MAN.

Swiss Pharma Nigeria Limited has already complied with the standards of good manufacturing practice (GMP) of the World Health Organisation (WHO) and has been certified for GMP by the world heath body, according to Colin Cummings, chairman/CEO, Swipha Ltd. Like Swiss Pharma, Evans Medical plc has also fully upgraded its facilities, while Chi Pharma Limited, May & Baker Nigeria plc and Juhel Nigeria Limited have completed and commissioned new factories within this period and are set to get certifications.

MAN’s July to December 2013 Economic Review shows that pharmaceutical and chemical industry (considered as one) had its capacity increase to 54 percent in the second quarter of 2013 (H2 2013), from 47 percent recorded by the first quarter of the same year (H1 2013). This also represents a rise from 51 percent and 52 percent reported by H2 2012 and H1 2012, respectively.

The report also shows that raw materials sourced locally by the sector rose to 61.18 percent in H2 2013, from 53.2 percent and 51 percent reported in H1 2013 and H2 2012, respectively. Total investments in H2 2013 also reached N218.8 billion, from N4.535 billion reported in H1 2013.

“In spite of huge investments by local manufacturers, the poor level of patronage by government ministries and agencies is unacceptable. Patronage is critical to the survival of the industry, hence, we consistently advocate patronage of local manufacturers and the implementation of domestic preference policy of the public procurement Act 2007,” Olaopa said recently.