Pharmaceutical industry players, under the auspices of the Federation of Nigerian Pharmaceutical Industry Associations (FeNPIA), has tasked the federal government to create a N600 billion Pharmaceutical Manufacturing Development Fund at five per cent interest, over a minimum of seven to 10-year tenor to support the local production of Active Pharmaceutical Ingredients (APIs), vaccines, critical supply chain interventions and Research & Development (R&D), among others.
This request aims to strengthen the local pharmaceutical industry and reduce the high cost of drugs, thereby making drugs available, accessible, and affordable for all Nigerians.
The president, FeNPIA, Dr. Okey Akpa, at the Pharmaceutical Stakeholders’ Consultative Forum, on Wednesday, in Lagos, averred that presently, most local pharmaceutical companies in Nigeria import APIs to produce their drugs, even as he disclosed that the fund will be channelled into bioequivalence studies, World Health Organization (WHO) prequalification, Pharma manufacturing value chain and regulatory development.
“This fund will also fast-track Nigeria into becoming a natural hub for the pharma industry in Africa, with benefits ranging from healthcare to FOREX earnings and contribution to GDP and employment,” the president added.
Though industry players have continuously aimed to ensure the availability and affordability of effective and safe medicines, including rare and innovative ones, by focusing on local production and strategic importation, Akpa said, they face some challenges that inhibit the expected growth; one of such challenges is importation of drugs and raw materials.
“Most of our production inputs and finished pharmaceutical products are imported, which only means that the final pricing of the finished product depends on the Foreign Exchange (FOREX) rate. As much as we understand the current monetary exchange regime in the country, we strongly recommend that the Pharmaceutical Industry be given special priority to access FOREX at rates that will moderate the final cost of medicines and other strategic healthcare commodities of critical need,” he stated.
As one of the ways to quickly improve access to quality, safe and productive medicines across the whole healthcare value chain, the president recommended a coordinated and strategic procurement process which could be by way of pooled procurement or public–private partnership in the medicine supply chain, as is being practised currently between some states and members of the pharmaceutical Industry.
“There is a need to foster strong collaboration between the National Health Insurance Authority, local manufacturers and overseas pharmaceutical distributors/importers to achieve Universal Health Coverage in line with the NHIA Act 2022,” he suggested.
Presently, pharmaceutical machinery, equipment and accessories attract from five per cent to as high as 25 per cent in some cases, even as Akpa proposed a zero per cent duty rate for local manufacturers on pharma machinery, equipment, and accessories, to drive the growth of the industry. ”Also, based on extant fiscal Policy, raw materials for pharmaceutical products are to be VAT – free and this should be sustained as against the recent push by the Nigeria Customs Service (NCS) to introduce VAT to some Pharmaceutical raw materials and even some Finished Pharmaceutical Products. The high tariff on some pharmaceutical manufacturing inputs needs to be urgently reviewed downwards as this will help further reduce the cost of drugs,” he added.
While assuring pharmaceutical players’ full support to the coordinating minister of Health and Social Welfare, prof. Muhammad Ali Pate’s agenda of ‘Unlocking the Healthcare Value Chain’ under the leadership of president Bola Ahmed Tinubu, Akpa however appealed that solving these challenges will make the pharmaceutical industry self-sufficient and help it become a net exporter of medicines, vaccines, and medical devices to Africa and beyond.
Former minister of Health, Prince Julius Adelusi-Adeluyi, added, “As we look forward to a pharmaceutical industry that will make drugs available, accessible and affordable, I appeal to the federal government to encourage the players in the industry by addressing these challenges highlighted so far, review obsolete laws that are hindering the growth of the industry and invest in R&D, among others.”
In his reaction, the coordinating minister of Health and Social Welfare, prof. Muhammad Ali Pate has averred that the Tinubu-led administration is putting everything in place to ensure that the pharmaceutical industry thrives and that Nigeria has affordable and safe commodities to improve the health of the population of this country.
“We have listened to players in the industry on what needs to be done and the president has directed the attorney general to develop an executive order. Nigerians should be assured that president Tinubu is listening, he is concerned about the issues that affect their welfare. We already appropriate resources for the procurement of critical medicines that will bring succour to the poorest and most vulnerable Nigerians,” Pate assured.
On high cost of drugs, the minister asserted that the cost of pharmaceutical products have skyrocketed in the last few months, globally, because there is shortage of APIs, adding that, “As the western world is struggling to resolve their issues, we too are putting in place mechanisms to procure and also engage with the local manufacturers, so that we can begin to provide solutions.”
Reacting to exits of pharmaceutical companies, Pate assured that Nigeria has a very vibrant local pharmaceutical manufacturing industry, while revealing that many foreign pharmaceutical companies have shown interest to enter the Nigerian market. “In the last three months, at least, three major players are exploring the opportunities to come and manufacture in Nigeria. We do hope that many others will follow suit. Our local industry will thrive. It is not easy at this point, but we are very confident that the industry will be able to weather the difficulties of today.”
On the issue of VAT on raw materials and imported products, the minister said, “We have a listening government and we are taking actions to see how we can reduce the burden. Our objective is to have our local manufacturers thrive.”
