... Advocates for upward valuation of the naira to achieve 70% local drug production
The Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria (PMG-MAN), while commending the federal government for the recent executive order it signed on medicals and pharmaceuticals, has however, said a clear timeline for the implementation was crucial.
The Executive Order signed by President Bola Tinubu was aimed at boosting local production of healthcare products, thus reducing costs.
Chairman of the Local Organising Committee for the forthcoming 7th Edition of the Nigeria Pharma Manufacturers Expo, slated for September 4th to 5th, 2024, Patrick Ajah, made this advocacy recently in Lagos.
While also lamenting that the recent fluctuations in the value of the naira have made it difficult for companies to plan and invest, including the Pharmaceutical sector, he said government needs to take proactive steps to achieve 70 per cent local drug production.
Speaking, Ajah, who is the Managing Director of May & Baker Nigeria Plc, warned that delays in the implementation of the order could lead to the drug shortages, which is an aberration, given that the executive order seeks to boost local manufacturing of medicines and reduce importation as well as foreign dependence.
Stressing that the most critical factor for the success of the domestic pharmaceutical industry is a stable exchange rate, he said the government will need to put things in place to achieve 70 percent local drug production, especially with that the ongoing fluctuations in the value of the Naira, adding that with the right backing, Nigeria can produce 70 per cent of the medicines it consumes.
He went on to state that if Implementation is delayed, " the things that companies should have placed order for, there will be scarcity. And if the implementation doesn't start immediately, we'll have a situation where you do not know where we're going."
"This is one major reason why multinational companies are leaving. It's not the fear of subsidy removal. If we didn't tamper with the currency, all the multinational companies would be here and they would still be making more investment.
Pointing to India as a perfect example of a country that has successfully supported its domestic pharmaceutical industry, he said the Indian government has provided financial and technical assistance to local manufacturers, and has even intervened to secure technology from other countries.
Thus, he posited that the most effective way to combat counterfeiting is to boost local production and reduce reliance on imports.
Although Ajah acknowledged that some progress has been made in terms of local capacity, he however said many companies lack the financial resources to invest in new facilities or upgrade existing ones.
This was just as he called for a reduction in interest rates, stating that current rates, which are as high as 30 per cent are a major barrier to investment in the industry.
Also speaking, the Executive Secretary of PMG-MAN, Pharm Frank Muonemeh, said Nigeria is already on the right track, with local manufacturers currently producing 40 per cent of the medicines used in the country.
Highlighting partnerships between state governments and local companies, he tasked for government support similar to that which has been provided to other sectors, such as cement and petroleum given that a strong domestic pharmaceutical industry is essential for national security.
On the 2024 Edition of NPME, with the theme "40 Years of Advocacy: Fostering Partnership and Innovation to Unlock the Pharma Manufacturing Value Chain in Nigeria, Central & West Africa", the executive secretary said
their ambitious goal is to drive Nigeria towards self-sufficiency and medicine security, aiming to reverse the country's dependency on imported medicine.
He said the 7th NPME 2024 is the flagship expo and the largest pharmaceutical manufacturing exhibition in Central and West Africa, organised by PMG-MAN and partners, GPE India.
To biennial Pharma Expo and Exhibition focuses on the latest pharma technology, machinery, equipment, Active Pharmaceutical Ingredients (APIs), and showcasing locally manufactured medicines, diagnostics, and consumables.
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"The recent economic challenges have pushed us to innovate, repurpose, and upscale our facilities to be more competitive and responsive in closing the gap in medicine access.
"Members are making SMART investments, building new greenfield facilities, acquiring machinery, and exploring innovative partnerships and technology transfer opportunities," he added.
He said the event which is a must-attend event for all actors in the pharmaceutical manufacturing ecosystem and potential investors in the pharmaceutical space offers a rare opportunity for productive networking and B2B engagement among all stakeholders, including regulators, policymakers, professionals, ancillary companies, academia, students, development partners, bilateral organisations, researchers, and NGOs. Participants are also expected to visit the PMG-MAN's website for registration.
