Two months later, the Federal Government of Nigeria is yet to enforce the executive order on the removal of the tariff on pharmaceutical import inputs, the managing director/CEO, May & Baker Nigeria Plc, Mr Patrick Ajah lamented.
Recall that President Bola Tinubu signed an executive order to introduce zero tariffs, excise duties and value-added tax (VAT) on imported pharmaceutical inputs, aimed at reducing the cost of medicines and supporting local pharmaceutical manufacturers by exempting critical inputs from import duties.
Despite the initial optimism, Ajah, at a press conference, to commemorates May & Baker Nigeria Plc 80th anniversary, on Monday, in Lagos, expressed frustration as the necessary policy changes have not been enforced. According to the CEO, pharmaceutical companies continue to face high import costs, coupled with the depreciating naira, leading to higher drug prices for consumers and hindering efforts to expand local production capacity.
Explaining further, the CEO said, “When GSK left Nigeria, the price of medications like Ventolin inhaler, which we know asthma patients need, (as any asthma patient that goes into crisis and doesn’t have inhalers is going to die), increased from N1,800 to about N25,000. The problem started when Nigeria floated the currency. The exchange rate went from N461/$ to N1600/$. We are struggling for some months now to buy dollars to procure Active Pharmaceutical Ingredients (APIs).
least we can get is N1,590. That’s why companies are collapsing. If the government doesn’t do anything about the exchange rate, I’m sorry to say the price of drugs will not come down.”
Speaking on local production of APIs in Nigeria, Ajah said no single company in Nigeria will be able to significantly address the issue of API, “hence the reason, May & Baker has joined forces with other local pharmaceutical companies to start producing APIs. The Consortium is made up of five big companies. We are working together to make sure that we get tech transfer, because we still depend on foreign households.”
As May & Baker commemorates its 80th anniversary, Ajah said the company is working hard to crash the price of drugs, by targeting drugs produced by foreign companies that have exited Nigeria. “We are planning to launch seven drugs this year. One of the drugs is Amoxyclav. It contains amoxicillin (an antibiotic from the penicillin group of medicines) mixed with clavulanic acid. The GSK product of Amoxyclav cost more than N25,000. Our plan is to crash that price.
“We are working with research centers in Nigeria like the National Institute for Pharmaceutical Research and Development (NIPRD), Abuja. The partnership has yielded result as we have been able to come up with a medication that was helpful in managing sickle cell. We have also come up with a drug called Roveda 600mg and 750mg, produced by a Nigerian professor for the management of diabetes, hypertension and breast cancer.”
Speaking on activities lined-up for the 80th anniversary, the CEO said activities include donation of transformer to host community in Ogun state; renovations of some charity homes within Lagos and its environ; helping some brilliant students at University of Ibadan and ‘Walk for Life’, to create awareness on life threatening diseases/health conditions.
Despite the harsh operating condition, Ajah said May & Baker has been able to weather the storm and continue to forge ahead, adding that, “Our success has been driven by an unwavering commitment to scientific excellence, a passion for research and development, and a dedication to improving patient outcomes despite challenges of the operating environment.”
