Drug Imports Drop 70% as Local Pharmaceutical Production Rises — NAFDAC

•Local Drug Output Hits 50% of Market, Up From 30% in 2019

The National Agency for Food and Drug Administration and Control (NAFDAC), says Nigeria has recorded a 70 per cent drop in the importation of pharmaceutical products covered by its local manufacturing policies.

The agency also disclosed that the number of pharmaceutical manufacturers in the country increased from 174 to 190, reflecting growing investment in domestic production.

NAFDAC Director-General, Prof. Mojisola Adeyeye, disclosed this at the Lagos Chamber of Commerce and Industry, LCCI, Invest in Nigeria Conference and Expo 4.0.

Adeyeye attributed the development largely to the agency’s 5+5 Policy and Ceiling List, which seek to gradually replace imported medicines with locally produced alternatives.

NAFDAC introduced the 5+5 Policy in 2019 for medicines that Nigerian manufacturers already have the capacity to produce. The policy requires importers to establish local manufacturing plants or partner qualified Nigerian firms through contract production.

The Ceiling List has also expanded the number of products restricted from importation. It rose from nine in 2020 to 36, according to the NAFDAC boss.

Adeyeye said the measures had begun to shift the pharmaceutical industry away from import dependence. She noted that locally manufactured products accounted for 50 per cent of the market in 2025, compared with 30 per cent in 2019.

She said the policies had also encouraged manufacturers to expand existing plants and develop new facilities.

As of June 2026, 176 pharmaceutical companies had completed facility-layout reviews and secured NAFDAC approval. The figure comprises 70 existing companies and 106 new companies.

“The trend indicates a shift from importation to local production, reflecting growing industry confidence and investment,” Adeyeye said.

Contract manufacturing has also expanded significantly under the policy. The number of companies involved rose from just 10 in 2019 to 87 in 2026.

Adeyeye said the growth would reduce Nigeria’s exposure to disruptions in international supply chains while strengthening its capacity to produce essential medicines locally.

She disclosed that 37 existing pharmaceutical manufacturers were undergoing construction or upgrades to meet current Good Manufacturing Practice, cGMP, standards.

Another 28 companies had completed construction and commenced operations, while 16 new pharmaceutical manufacturers had emerged.

The agency also recorded six new medical device and in-vitro diagnostics manufacturers. The facilities are being developed with critical infrastructure, including heating, ventilation and air-conditioning systems.

Adeyeye said 28 newly developed and retrofitted companies, alongside 16 new facilities, had contributed to a 25 per cent increase in local pharmaceutical manufacturing.

She also pointed to growing foreign investment in Nigeria’s medical device industry. International investors are entering joint ventures with Nigerian firms to establish manufacturing facilities.

According to her, technology transfer has also increased, particularly for pharmaceutical formulations that Nigerian companies can now produce locally.

Adeyeye linked the growth partly to the Presidential Executive Order granting zero tariffs, excise duties and Value-Added Tax on imported machinery, equipment and raw materials for healthcare manufacturing.

She urged investors from more than 43 countries at the LCCI conference to take advantage of Nigeria’s changing regulatory environment and available incentives.

The NAFDAC boss said the agency would continue to support manufacturers through regulatory handholding and Corrective Action and Preventive Action clinics.

She added that NAFDAC was developing a Global Listing Re-evaluation strategy for the food and cosmetics sectors. The initiative will identify products that Nigeria can produce locally and encourage investment in those areas.

Adeyeye urged manufacturers and other stakeholders to cooperate with the agency in implementing policies aimed at strengthening domestic production.

She said NAFDAC remained committed to improving Nigeria’s food and drug security through regulation that supports investment, innovation and local manufacturing.