PMG-MAN Warns That Nigerians Should Not Expect Cheap Drugs

According to Oluwatosin Jolayemi, President of the Pharmaceutical Manufacturers Group of the Manufacturers’ Association of Nigeria (PMG-MAN), unless the Federal Government takes action to implement its policies aimed at ensuring medicine security and self-sufficiency, Nigerians should not anticipate access to affordable medications.

At the 13th Annual Symposium and Excellence Award ceremony of the Health Writers’ Association of Nigeria, held in Lagos and themed “Dwindling Local Drug Production and High Cost of Essential Medicines: Rethinking Strategies for Growth”, Mr. Jolayemi stressed that the government plays a vital role in ensuring medicine security, and that creating a conducive environment, fueled by effective policies, is essential to achieving this goal.

According to Jolayemi, who was represented by PMG-MAN’s Executive Secretary, Mr. Frank Muonemeh, crafting the right policies is just the beginning, accounting for only 10% of the effort required.

The remaining 90% depends on the government’s unwavering commitment to implement these policies effectively, which demands a coordinated and resolute political will to drive meaningful change.

The President of PMG-MAN, Mr. Jolayemi, emphasized that local drug manufacturers face numerous challenges, including excessive taxation, infrastructure gaps, limited access to foreign exchange, lack of government support, inconsistent policies, and difficulty in obtaining affordable loans.

He warned that Nigeria’s vulnerability to future pandemics is heightened by the declining value of the Naira and rapid population growth, and urged the government and private sector to collaborate in prioritizing national medical security as a critical aspect of national security.

Mr. Jolayemi proposed adopting the PMG-MAN’s concept of medicine security, which emphasizes Nigeria’s need to have control over the entire pharmaceutical production process, from sourcing raw materials to manufacturing finished products, in order to achieve self-sufficiency in medicine production and ensure a stable supply of essential medicines for the country’s population.

“Medical security emphasises the importance of ownership and leadership in achieving sustainability in access to medicine. It is built on five components: availability, accessibility, affordability, quality, and safety,” he stated.

The CEO of St. Racheal’s Pharmaceuticals, Mr. Akinjide Adeosun, who also chaired the symposium, highlighted the significant challenges faced by pharmaceutical companies operating in Nigeria, citing the country’s harsh economic conditions, including fluctuating exchange rates, high import duties, and regulatory hurdles, which make it extremely difficult to run a successful pharmaceutical business in the country.

He stated that the monetary policy rate (MPR) by the Central Bank of Nigeria to reduce the high rate of inflation is no longer sustainable and urged that the government now focus on growth rather than inflation.

“The strategy of the federal government has been to increase MPR. No doubt, the governor of CBN, Olayemi Cardoso, has been able to use monetary tools to be able to manage the economy. However, after trying this for a year, and inflation is still high; the lending rate is also high, it is time to switch gears, he said.

“When you borrow money at an interest rate of about 38 percent to import drugs into the country, coupled with the high cost of fuel/diesel, clearing cost, import duties, and levy duties (as not all drugs attract zero percent). Import duties may be zero percent, but levy is about 20 percent; no business can survive.”

Mr. Adeosun appealed to the government to prioritize economic growth over inflation control, by reducing the Monetary Policy Rate (MPR) to bring down commercial lending rates from over 30% to a single digit, thereby stimulating economic growth by making borrowing more affordable and accessible.

Mr Adeosun, however, urged the government to chase growth and leave inflation alone by reducing MPR to enable commercial lending rates to crash to a single digit from the present rate that is over 30 percent to stimulate economic growth.

“CBN has been increasing MPR for about a year without any concrete result. It is now time to leave inflation alone and start chasing growth. You cannot chase growth if manufacturers cannot borrow at a single digit,” he noted.

The national chairman of the Association of Community Pharmacists of Nigeria (ACPN), Mr. Adewale Oladigbolu, stated that the pharmaceutical industry is currently struggling and facing a significant funding shortfall, estimated to be in billions of naira, which is hindering its growth and development.

According to him, “government must come in heavily. The same kind of interventions seen in the petroleum industry should be done in the pharmaceutical sector. The government has great intentions to transform the industry, but those intentions have not been translated to practical means. It is time for government to take action by fulfilling its promises to the industry.”

HEWAN President Chioma Obinna explained that the symposium’s theme was chosen in response to the alarming rise in medicine costs in Nigeria, which has created significant challenges for individuals with chronic conditions and vulnerable populations who require access to affordable and quality healthcare services.