The Association of Industrial Pharmacists of Nigeria (NAIP) has issued a warning regarding the potential scarcity of essential medications across the country, citing the current economic downturn as the primary cause.
Addressing attendees at the 5th Annual International Conference of the Nigerian Association of Foreign Trained Pharmacists, held at Sheraton Hotel, Ikeja, Lagos State, the Chairman of NAIP, Kenneth Onuegbu expressed deep concern about the adverse effects of the current economic situation on medication production and importation in the nation.
Mr. Kenneth Onuegbu said pharmaceutical companies may find it increasingly challenging to provide vital medications unless the government takes proactive measures to tackle two critical issues the exorbitant cost of diesel and the shortage of foreign exchange.
Mr. Onuegbu, while outlining the key challenges faced by the pharmaceutical sector, implored the federal government to intervene and create a conducive environment for producers.
- “We have insecurity issues, and how to get the medication from the point of production to the final consumer is another challenge that we have not been able to solve.
- “To access forex is a big challenge. The process can take a year to get the CBN subsidised rate, hence, we resort to the black market. You can imagine that we buy drugs at the rate of N1,100, and automatically, it will affect production.
- “If we don’t do something about it, there is going to be a scarcity of essential medicines. We must call for the domestication of medications to reduce the production cost.
- “It is also important to note that our environment is over-regulated. Our regulation ought to have a Nigeria face; we cannot be promoting local production when you are making it difficult for them to start.
- “Government needs to tackle insecurity, epileptic power supply, forex and host of others if they really want pharmaceutical companies to survive in this country.”
Backstory
The Nigerian pharmaceutical industry has been facing a myriad of challenges of which forex scarcity and the attendant depreciation of the naira stand tall.
The Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye confirmed that the depreciation of the naira is primarily responsible for the rise in drug prices across the country.
- In her words, “The primary reason for the rise in drug prices is the depreciation of the value of the naira. Even before GSK’s planned exit from the country, there was a general increase in the prices of commodities, and some of the products that GSK manufactured experienced a decrease in supply”
The exit of industry giant GSK Nig can also be attributed to the volatility of the foreign exchange market.