Stakeholders Question Feasibility of 70% Local Pharmaceutical Manufacturing Target by 2030
Stakeholders in Nigeria’s pharmaceutical sector have raised concerns about the country’s ability to meet its ambitious goal of increasing local manufacturing of pharmaceutical products and vaccines to at least 70% of locally consumed items by 2030. Despite various government initiatives, several challenges persist that hinder progress.
Key Challenges Facing the Sector
The stakeholders highlighted several critical issues that impede the growth of local pharmaceutical production. These include:
- Inadequate infrastructure: Many manufacturing facilities lack the necessary infrastructure to operate efficiently.
- Unstable power supply: Frequent power outages force companies to rely on expensive alternative energy sources like generators or solar power.
- Forex access and volatility: Limited access to foreign exchange and currency fluctuations make it difficult for manufacturers to import essential raw materials.
- Heavy dependence on imported raw materials: The sector relies heavily on Active Pharmaceutical Ingredients (APIs) imported from countries like India and China.
These factors collectively create a challenging environment for domestic pharmaceutical companies trying to scale up their operations.
Government Initiatives and Their Impact
In June 2024, President Bola Tinubu signed an executive order aimed at boosting local pharmaceutical production. This order introduced zero tariffs, excise duties, and value-added tax on imported pharmaceutical products and inputs. The Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate, emphasized that the initiative also seeks to increase local production of healthcare products.
The minister noted that agencies involved will ensure swift implementation of the order, with special waivers and exemptions effective for two years. He also stated that the executive order is part of the Presidential Initiative to Unlock the Healthcare Value Chain, which aims to increase local manufacturing of pharmaceutical products to at least 70% by 2030.
Additionally, the Federal Government, through the Pharmaceutical Verification and Accreditation Committee (PVAC), plans to boost the workforce in life sciences manufacturing by tens of thousands, establish at least two plants for biologicals, five new medical supplies and diagnostics platforms, and double Nigeria’s pharmaceutical market share in Africa to at least 15%.
While PVAC is designed to strengthen coordination across institutions and accelerate value chain transformation, the Executive Order provides direct incentives for local manufacturing of medicines, syringes, rapid diagnostic test kits, and pharmaceutical inputs.
Industry Perspectives on the 2030 Timeline
Despite these efforts, industry stakeholders remain skeptical about achieving the 70% target by 2030. In an exclusive interview with PUNCH Healthwise, Ayuba Tanko, President of the Pharmaceutical Society of Nigeria (PSN), stressed that while increasing local pharmaceutical production is achievable in the long term, meeting the 2030 timeline is not feasible at the current pace.
Tanko said, “Let me be candid with Nigerians. At the current pace, we cannot achieve 70% local pharmaceutical production by 2030. Four years is an ambitious timeline, and ambition without structural reform is merely a wish list.”
He emphasized the need for fundamental shifts from incremental adjustments to transformative industrial policy. While he acknowledged that achieving 70% seems herculean, Tanko suggested that noticeable progress could be made with genuine political will.
Calls for Radical Steps
Tanko urged the government to take radical steps, including:
- Patronizing local pharma products: Making local content a binding condition for all public pharmaceutical procurement.
- Dedicated affordable capital: Establishing a pharmaceutical manufacturing fund at single-digit interest rates.
- Improved infrastructure: Ensuring reliable power, water, and road access in designated manufacturing clusters.
- API self-sufficiency: Treating API investment as a national security priority.
He added that the government must stop managing the issue as a health sector problem and instead treat it as an economic development imperative.
Concerns from Other Industry Leaders
Ambrose Ezeh, National Chairman of the Association of Community Pharmacists of Nigeria (ACPN), echoed similar concerns, stating that the 2030 target is not realistic. He pointed out that while there are many laws and policies, implementation remains a major challenge.
Olumide Akintayo, a former PSN president, also expressed skepticism, noting that past targets have consistently been missed. He argued that what Nigeria needs is a conscious industrial policy that outlines sustainable goals.
Akintayo emphasized the importance of industrial policies in driving economic growth. He highlighted that countries like India and China contribute significantly to Nigeria’s drug needs because their pharmaceutical industries are well-integrated into their economies.
Conclusion
The path to becoming a major pharmaceutical hub in Africa requires more than just policy pronouncements. It demands a comprehensive approach that includes structural reforms, improved infrastructure, and a clear industrial strategy. Without these, the 2030 target may remain an unattainable dream.
