Pharmaceutical Imports Dip 63% in Nigeria as Local Production Strengthens Industry
The pharmaceutical industry in Nigeria has witnessed a significant decline in imports, as local production takes a leap forward. According to data released by the National Agency for Food and Drug Administration and Control (NAFDAC), pharmaceutical imports dropped by 63% over the past two years. This decline can be attributed to various factors, including an increase in local manufacturing and other efforts to boost the local production of pharmaceutical products.
NAFDAC, in response to a report published by BusinessDay, clarified that the earlier report did not capture the full story of the declining pharmaceutical imports. While it is true that challenges such as difficulty in accessing foreign exchange, devaluation of the naira, and high inflation have contributed to the decrease in imports, the report failed to acknowledge the significant increase in local production.
The newly released data from the International Trade Centre revealed that pharmaceutical imports into Nigeria amounted to $1.05 billion in 2022, marking a decline of 23.4% from the previous year. Furthermore, imports had dropped by a staggering 63% from $2.84 billion in 2020. In parallel, pharmaceutical exports reduced by 65%, amounting to $779 million in the same year.
NAFDAC acknowledged that the statistics provided by BusinessDay accurately reflected the reliance on finished drug imports, the importation of active pharmaceutical ingredients, and the sharp rise in prices of both locally manufactured and imported drugs. The impact of these changes on stakeholders in the pharmaceutical sector, however, varied.
The director-general of NAFDAC, Mojisola Adeyeye, highlighted the agency’s commitment to promoting local pharmaceutical production since its inception. In pursuit of this goal, NAFDAC implemented several policies, including the 5+5 Policy or regulatory directive (RD). This policy aims to transition previously imported products to local manufacturing. After the expiration of the first five-year renewal period, importers or manufacturers must present a plan to migrate to local production or establish partnerships with local manufacturers.
As of July 2023, NAFDAC reported that 57 local companies, accounting for approximately 30% of all local manufacturers, have submitted blueprints for migrating to local production. These companies are either constructing brand-new pharmaceutical manufacturing plants or entering contract manufacturing partnerships with existing local manufacturers.
To further bolster local manufacturing, NAFDAC has introduced other policies such as the expansion of its Ceiling list, which identifies medicines that can be manufactured locally. The list has been expanded from nine to 34 products. Additionally, the agency has facilitated the establishment of new pharmaceutical plants in Nigeria, ensuring that companies design their facilities properly to eliminate the risk of manufacturing substandard medicines.
The positive outcomes of these policies have paved the way for Nigeria to reduce its reliance on imported medicines and tap into the unused potential of local manufacturers. While challenges such as forex access and inflation persist, the growth of the local pharmaceutical industry is a step in the right direction. By focusing on enhancing local manufacturing and regulatory oversight, NAFDAC aims to improve access to safe and effective medicines that meet the highest quality standards.
In conclusion, Nigeria’s pharmaceutical industry has witnessed a decline in imports, largely due to the increase in local production. Efforts by NAFDAC and other stakeholders have been instrumental in driving this shift. While challenges remain, the growth of the local pharmaceutical sector provides hope for a self-sufficient and robust industry in Nigeria.
