Examining Fidson milestones

Fidson Healthcare Plc has shown high level of confidence in the Nigerian economy, completing its N9 billion drug-making factory at a point investors are fleeing the country.

Many investors in Nigeria have backtracked on the back of economic slump, caused by oil price lows and lack of clear policy direction. Investors also fled Africa’s most populous nation for other countries as oil price slump created acute dollar scarcity and unemployment.

However, Fidson Healthcare completed its multi-billion plant in the second quarter of the year, readying to employ a number of people who will work directly and indirectly at the Otta, Ogun State factory.

Real Sector Watch gathered that the pharmaceutical is in dire need of foreign exchange with which to import excepients and other inputs. The company is also in need of gas as power supply across the country depletes.

Analysts stress the need to support Fidson to become competitive and attain the much-awaited World Health Organisation (WHO) Prequalification necessary for global play.

Abiola Adebayo, the company’s operations director, told this newspaper at a factory tour that there was a need to resolve the Common External Tariff (CET) challenge, which had become a cog in the wheel of progress for drug makers in Nigeria.

The CET, which is a uniform tariff agreement among countries in the Economic Community of West African States (ECOWAS), places no tariff on importation of finished drugs but five to 20 percent on the importation of excepients, packaging materials and other inputs. This, however, reflects poor negotiation on the part of the Nigerian representatives during the CET discussion, say experts.

Real Sector Watch gathered that the issue of CET is causing a lot of problems for local drug makers, who want a quick resolution to the problem.

Isaac Folorunso Adewole, Nigeria’s health minister, visited Fidson in July and categorically said he had written that the CET be scrapped.

“It does not just make sense,” the minister told Real Sector Watch in July.

The minister also acknowledged the need to support companies like Fidson, saying that he would take some of the company’s complaints to the highest quarters.

“We will like to see an action in this area. I am not a drug manufacturer, but I feel their pains because I am also a manufacturer,” said Ike Ibeabuchi, CEO of MD Services Limited.

ODINAKA ANUDU