Federal Gov’t Leverages $200bn APIs Global Market To Boost Pharmaceutical Sector

The federal government of Nigeria has announced plans to tap into the $200 billion global market for Active Pharmaceutical Ingredients (APIs) as a strategic move to enhance its pharmaceutical industry.

The federal government aims to position the country as a key player in the production and supply of APIs, which are essential for the manufacturing of drugs. The initiative is part of Nigeria’s broader strategy to reduce its dependency on imported pharmaceuticals and to stimulate local production, thereby ensuring the availability of essential medicines. Nigeria hopes to address the recurrent issues of drug shortages and high medicine costs by developing a robust API manufacturing sector.

The coordinating minister of Health and Social Welfare, Prof. Ali Pate, disclosed this at the 2nd regional workshop on Manufacturing of Active Pharmaceutical Ingredients (APIs) and Excipients in Nigeria, organised by the National Agency for Food and Drug Administration and Control (NAFDAC), in partnership with the USAID, World Health Organization (WHO), USP, Bill and Melinda Gate Foundation and Nigeria Sovereign Investment Authority (NSIA), on Monday, in Lagos.

Pate, who was represented by the national coordinator of the Presidential “Unlocking Healthcare Value-Chain” Initiative, Dr Abdu Mukhtar, said Nigeria import almost 80 percent of its medicines, almost 100 percent of vaccines and almost 99 percent of its medical devices, including diagnosis tests and kits.

To reverse this trend, Pate said the federal government has come up with the presidential initiative, adding, “The initiative has a very clear target, and our plan is actually to bring about reduction, and more so reversal of those numbers. We aim to produce at least 10 to 20 percent of the APIs we consume in this country locally. 10 to 20 percent may sound quite low, but this is again moving from zero.”

The director general of NAFDAC, Prof Moji Adeyeye, said there is nothing wrong with the importation of medical products, but Nigeria became addicted.

“About six years ago, I challenged the pharmaceutical manufacturers to look inward. They responded, which is why we are having this crucial meeting today. The workshop will empower them with the right knowledge and tools for manufacturing APIs and the regulatory requirements,” she added.

Similarly, a WHO representative in Nigeria, Dr Walter Kazadi Mulombo, said the APIs Global market was worth about $200 billion last year with a projected growth of almost $400 billion by 2030. “So, it’s a very lucrative market, and for good reason,” he added.

He applauded the federal government of Nigeria for its move in the local production of APIs, adding, “The local manufacturing of APIs is a strategic decision in aligning the vision and agenda of the coordinating minister of Health and Social Welfare and this administration on unlocking the healthcare value chain, particularly on the local manufacturing of medicine, diagnostics and other healthcare commodities.”

The executive director and chief investment officer of NSIA, Kolawole Owodunni, said Africa is rich in natural resources and has a young, dynamic workforce; however, it faces challenges in its healthcare sector.

One of the key issues is the dependency on imported APIs and imported finished pharmaceutical products, Owodunni said, adding, “Currently, over 90 percent of the APIs and excipients used in Africa are imported into the continent, mostly from Asia and Europe. This dependency poses critical problems, and there are two of those that we have experienced or are currently experiencing.”