Nigeria’s pharmaceutical industry is seeing rising investor interest and commitments, yet local manufacturing remains low at about 38%, leaving the country heavily reliant on imports and far from its 70% local production target by 2030.
Okay News reports that the growing investments follow federal government policies introduced in 2023 after multinationals like GlaxoSmithKline and Sanofi exited Nigeria.
Key reforms include an executive order waiving import duties and taxes on essential raw materials and equipment, pooled procurement initiatives, foreign exchange market adjustments, and the launch of the Presidential Initiative on Unlocking the Healthcare Value Chain (PVAC).
These measures have boosted investor confidence, according to the 2025 Joint Annual Review (JAR) health sector report and government data.
However, progress in reducing import reliance has been slow. Nigeria produces over 11,700 metric tonnes of ready-to-use therapeutic food (RUTF) locally and has shifted 66 products from importation to domestic production under NAFDAC’s 5+5 policy.
Local production of other critical commodities lags, with zero production of malaria nets despite Nigeria’s high malaria burden. There has been no increase in priority tracer medicines, and the country exports no WHO-prequalified health products.
Manufacturers cite persistent challenges including high operating costs, limited access to affordable loans, bureaucratic delays, and poor infrastructure.
Lanre Shittu, chairman of HMA Medicals Limited, said: “Nigeria has one of the highest costs of manufacturing. The cost of power is high… The challenges that were there before have not changed.”
Shittu also highlighted issues with expatriate permits and access to finance, noting that the N50 billion loan scheme is insufficient.
Francis Meshioye, president of the Manufacturers Association of Nigeria, agreed that high electricity tariffs, poor infrastructure, and non-release of budgetary allocations continue to hinder the sector.
The JAR report notes that 11 states lack Drug Management Agencies (DMAs), and 16 state Central Medical Stores (CMS) fall below pharma-grade standards.
Stakeholders stress that reforms must be institutionalised and sustained to translate investments into tangible gains.
Nigeria has signed at least 10 strategic memoranda of understanding with global firms, including a deal with Vestergaard for dual active-ingredient long-lasting insecticidal nets, collaborations with Abbott and Wondfo for rapid diagnostic tests, and a partnership with Siemens Healthineers for ultrasound technology.
The healthcare sector attracted over $4.8 billion in potential investments in 2024 and $2.2 billion in commitments in 2025 through the Nigeria Health Sector Renewal Investment Initiative.
