Pharmaceutical multinationals left Nigeria because of forex scarcity – PMG-MAN

The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) has sounded the alarm over the severe impact of foreign exchange scarcity on the local pharmaceutical sector, leading to the departure of major multinational companies.

Forex Fluctuations Drive Out Industry Giants

At a press conference previewing the 7th Nigeria Pharma Manufacturers Expo (NPME) scheduled for September 4 and 5, industry leaders highlighted the exodus of pharmaceutical giants such as GlaxoSmithKline (GSK) and Sanofi Nigeria Ltd. GSK ceased operations in Nigeria in August 2023, ending a 51-year presence, while Sanofi exited in November, both citing forex instability as a key factor.

Call for Government Intervention

Mr. Patrick Ajah, Chairman of the Local Organising Committee for NPME 2024 and Managing Director of May & Baker, stressed the need for a stable exchange rate to revive the domestic pharmaceutical industry. He urged the government to implement the recent Executive Order signed by President Bola Tinubu, which aims to remove tariffs and VAT on pharmaceutical imports and raw materials.

Local Production as a National Imperative

Ajah argued that achieving 70% local drug manufacturing is critical for Nigeria’s healthcare independence but remains a distant goal without forex stability. He pointed out that the naira’s devaluation from N316 to over N1,500 per dollar has crippled investment plans, driving away multinational companies that can no longer remit profits feasibly.

Drawing Lessons from India

Ajah cited India as a successful model where government support transformed the local pharmaceutical industry into a global powerhouse. He called for similar financial and technical assistance for Nigerian manufacturers, emphasizing that a robust domestic pharmaceutical industry is essential for national security and economic stability.

Industry Leaders Echo Concerns

Frank Muonemeh, Executive Secretary of PMG-MAN, noted that local manufacturers currently produce only 40% of Nigeria’s medicines. He advocated for strategic partnerships between the government and local companies, akin to those in the cement and petroleum industries, to enhance domestic production capabilities and reduce reliance on imports.

A Vision for the Future

With the right support, Nigeria can significantly boost its pharmaceutical production, easing the forex burden and ensuring a steady supply of essential medicines. As the nation prepares for the upcoming NPME, industry stakeholders remain hopeful that these pressing issues will be addressed, paving the way for a resilient and self-sufficient pharmaceutical sector.