The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) says there is not enough foreign money in Nigeria. They are worried because this makes it very hard for medicine companies to work.
They also say that many big medicine companies from other countries have left Nigeria because of this problem.
These worries were talked about at a news event in Lagos before the 7th Edition of the Nigeria Pharma Manufacturers Expo (NPME).
The Foreign Money Problem
Big medicine companies like GlaxoSmithKline (GSK) and Sanofi left Nigeria because they could not get enough foreign money. GSK left in August 2023 after 51 years, and Sanofi left in November.
- Mr. Patrick Ajah, who helps organize NPME 2024 and leads May & Baker, says that a steady exchange rate is very important for medicine companies in Nigeria to do well.
- Ajah says that the Naira, the local money, keeps changing in value. This makes it hard for medicine companies to plan and invest money.
“Unless the Naira’s value stays the same, Nigeria will not make 70% of its medicines locally,” Ajah said.
“The changing value of the Naira makes it hard for companies to invest and plan,” he added.
“This is why big companies are leaving. It’s not because of the fear of subsidy removal.”
“If we didn’t change the Naira, these big companies would stay and invest more.”
Ajah explained that because the Naira’s value keeps changing, many big companies are leaving Nigeria.
“Many companies cannot manage this problem. Fixing our exchange rate will help a lot.”
Ajah mentioned a new rule by President Bola Tinubu that removes extra taxes and VAT on imported medicine things. This rule aims to help local production, but it is not in effect yet.
Ajah wants the government to do more, like fixing the exchange rate, to make big companies invest in Nigeria again.
What You Should Know
Mr. Frank Muonemeh, the PMG-MAN Executive Secretary, agrees with Ajah. He says local companies make only 40% of the medicines used in Nigeria.
- Muonemeh wants the government to help local medicine companies like they help cement and oil companies.
- He said, look at India; their government support has helped their medicine companies a lot.
Muonemeh says having strong local medicine making is important for the safety and economy of the country.
He thinks Nigeria should copy India’s way from the COVID-19 times, focusing on making medicines locally to ensure everyone has what they need.
“Nigeria can make 70% of its medicines if the government helps,” Muonemeh said.
He added that making more medicines locally and selling them abroad can also help with the foreign money problem.