The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) has said pharmaceutical companies can no longer cope with the scarcity of foreign exchange in Nigeria.
Managing Director of May & Baker, Mr. Patrick Ajah, stated this at a news conference in Lagos ahead of the 7th Edition of the Nigeria Pharma Manufacturers Expo (NPME).
Ajah who is also the Chairman of the Local Organising Committee for NPME 2024, attributed the exit of several multinational pharmaceutical companies from the country to the forex scarcity.
He pointed out that a stable exchange rate is crucial for the progress of the domestic pharmaceutical industry, adding that the challenges posed by the fluctuating value of the Naira have deterred investment and planning within the industry.
“Unless the value of the Naira is stabilised, achieving the country’s target of 70% local drug manufacturing will remain a mirage. The recent fluctuations in the value of the Naira have made it difficult for companies to plan and invest. This is one major reason why multinational companies are leaving. It’s not the fear of subsidy removal,” Ajah stated
Ajah highlighted the recently signed Executive Order by President Bola Tinubu, which removes tariffs and Value-Added Tax (VAT) on pharmaceutical imports, pointing out that while the order introduces zero tariffs, excise duties, and VAT on specialised machinery, equipment, and raw materials to boost local production, it had yet to take effect.
He, therefore, called on the government to implement additional measures, including fixing the exchange rate, to attract and retain multinational investments.
Executive Secretary of PMG-MAN, Mr. Frank Muonemeh, reinforced Ajah’s sentiments, noting that local manufacturers currently produce only 40 per cent of the medicines used in Nigeria.
Muonemeh urged the government to support the local pharmaceutical industry similarly to other sectors, such as cement manufacturing and petroleum.
He cited India as a model, where government support has significantly boosted the domestic pharmaceutical sector.
