The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) expressed deep concern over the scarcity of foreign exchange in Nigeria, highlighting its detrimental effects on the local pharmaceutical sector.
In a press conference held in Lagos ahead of the Nigeria Pharma Manufacturers Expo (NPME) 2024, PMG-MAN emphasized that forex fluctuations have driven several multinational pharmaceutical companies to exit the country. Notably, GlaxoSmithKline and Sanofi Nigeria Ltd. ceased operations within the past year, citing economic instability.
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Mr. Patrick Ajah, Chairman of the Local Organising Committee for NPME 2024 and Managing Director of May & Baker, underscored the critical need for a stable exchange rate to foster growth in the domestic pharmaceutical industry.
He stressed that the recently announced Executive Order removing tariffs and VAT on pharmaceutical imports, aimed at boosting local production, must be swiftly implemented to achieve its intended goals.
Ajah remarked, “Unless the value of Naira is fixed, achieving the country’s target of 70 per cent in 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.”
He further explained the challenges faced by multinational companies due to currency instability, stating, “If we didn’t tamper with the currency, all the multinational companies would be here, and they would still be making more investments.”
Ajah called for enhanced government support to enable Nigeria to produce a significant portion of its medicine locally, emphasizing the potential benefits of such a move for the nation’s health sector and economy.
