Posted on: Wed 17-07-2024

Sourcing selected drugs may be difficult in the coming months as some pharmaceutical companies have suspended importation of pharmaceutical raw materials into the country pending when the Federal Government enforces the implementation of the Executive Order it signed last month.

The Executive Order mandates zero tariffs, excise duties and value-added tax (VAT) on specified machinery, equipment and raw materials to reduce production costs and enhance local manufacturers’ competitiveness.

Specified items include APIs, excipients and essential raw materials required for manufacturing basic health products including drugs, long-lasting insecticides, bed nets and rapid diagnostic kits.

The manufacturers, speaking under the aegis of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), said failure by the Federal Government to enforce and follow up on the implementation of the order would lead to drug scarcity.

They also expressed serious concerns over the scarcity of foreign exchange (FX) and the rising interest rates, saying they can't cope or achieve local production.

They also attributed the FX scarcity to the exit of several multinational pharmaceutical companies from the country in the last two years. The concerns were highlighted during a news conference in Lagos ahead of the upcoming seventh edition of the Nigeria Pharma Manufacturers Expo (NPME 2024), scheduled for September 4th to 5th 2024.  

Chairperson of the expo’s Local Organising Committee (LOC), Patrick Ajah, who is also the Managing Director and Chief Executive Officer (CEO), of May&Baker Nigeria Plc, said importation of materials has been suspended while they await the implementation of the executive order.

Stressing that a stable exchange rate is crucial for the progress of the local pharmaceutical industry, he emphasised the challenges posed by the FX crisis, which he said has deterred investments and planning.

“Unless we have a stable currency, achieving the country’s target of 70 per cent local drug manufacturing from its current 30 per cent will remain a mirage. The recent fluctuations in the value of the naira have made it difficult for companies to plan and invest. And this is why multinational companies are leaving,” he said.

Ajah pointed out that the recent FX crisis has made it nearly impossible for companies to cope, forcing many multinationals to withdraw

“It is not enough to make an order; you must follow up to ensure it is done. Achieving 70 per cent is possible but requires a strong commitment from the government.

SOURCE: GUARDIAN NEWSPAPER

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