Pharmaceutical Sector Records Growth as Local Production Rises to 50%

Pharmaceutical Sector Records Growth as Local Production Rises to 50%

FELICIA ONAH, Abuja

Nigeria’s pharmaceutical industry is witnessing a major shift, with locally manufactured medicines now accounting for about 50 per cent of the market, a significant improvement from the previous 30 per cent, stakeholders have said.

The development was highlighted at the commissioning of a new ultra-modern facility by SAM Pharmaceuticals Limited in Sango-Ota, Ogun State, where industry leaders and government officials credited deliberate policy reforms and strong regulatory oversight for the progress recorded.

Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye, said the growth reflects the impact of sustained government policies and a strengthened regulatory system.

“What we are witnessing today is a culmination of deliberate government policies and a dogged regulatory system,” she said.

Adeyeye explained that initiatives such as the agency’s ‘five plus five’ policy and the ‘ceiling list’ have encouraged local manufacturing by compelling import-dependent companies to either establish production facilities in Nigeria or partner with local manufacturers.

According to her, the reforms have led to a sixfold increase in contract manufacturing, boosting the capacity of indigenous pharmaceutical firms.

“We insisted that you must migrate to local manufacturing or, if you don’t have the capacity, partner with a local manufacturer. We now have a sixfold increase. No investor would like to invest where the regulatory system is weak,” she said.

She further noted that Nigeria’s attainment of the World Health Organization’s Maturity Level 3 (ML3) status has enhanced confidence in the country’s regulatory system, positioning local manufacturers for global competitiveness.

“Quality is synonymous with trade. When quality is built into the product, trade will be enhanced,” Adeyeye added, expressing optimism that Nigeria would soon attain higher global regulatory recognition.

Chairman of FIDSON Healthcare Plc, Dr. Fidelis Ayebae, corroborated the progress, stating that the industry has grown threefold in recent years.

“The ratio of imported pharmaceutical products to locally manufactured medicines has moved from 70-30 to 50-50,” he said.

“Industries are not self-driven—policies drive industries. The policies that anchor the industry must be right,” Ayebae added, commending NAFDAC for creating an enabling environment for growth.

He noted that new factories are being established while existing ones are being upgraded, leading to job creation and increased production capacity across the country.

Host of the event and Chairman of SAM Pharmaceuticals Limited, Amit Bhojwani, described the regulator as a key partner in the company’s growth journey.

“In this journey, our regulator has been our partner. NAFDAC has pushed us towards high standards and helped us prove that made-in-Nigeria is synonymous with world-class,” he said.

Minister of State for Health and Social Welfare, Dr. Isiaka Salako, said the transformation of the pharmaceutical sector is central to Nigeria’s healthcare security and economic development.

He disclosed that recent federal government interventions, including a presidential executive order granting zero tariffs on pharmaceutical machinery and raw materials, are already benefiting about 87 local manufacturers.

“This expansive pharmaceutical manufacturing facility strongly aligns with the Nigeria First philosophy of Mr. President’s Renewed Hope Agenda,” Salako said.

He added that the government is also driving initiatives to strengthen the healthcare value chain, promote research and innovation, and support local production of essential medical supplies.

India’s Consul General to Nigeria, Kannan Chockalingham, also acknowledged the role of improved regulation and ease of doing business in the sector’s growth, pledging continued collaboration with Nigeria to build local capacity.

Ogun State Deputy Governor, Noimot Salako-Oyedele, described the state as a leading industrial hub and reaffirmed its commitment to supporting pharmaceutical investments.

She said the state government would continue to enhance the ease of doing business to attract more investors and create employment opportunities.