Fidson Healthcare’s proposed pharmaceutical production plant in the Lekki free trade zone area is expected to cost around $100 million according to reports by Bloomberg.
The plant is designed to promote “self-reliance in health-care delivery, especially to tackle HIV” in Nigeria.
According to the Joint United Nations Programme on HIV/AIDS, Nigeria has an estimated 2 million people living with the virus.
Last year, the National Agency for the Control of AIDS reported that the country recorded about 1,400 new infections weekly, and around 1.2 million children are orphaned.
Fidson, which produced over-the-counter drugs for GSK, is stepping in to address the gap in the country’s drug supply chain. According to the company, it has launched over 16 new products since June of last year.
The company said, “By integrating our expertise and experience in the field of innovative drugs, we are confident in bringing greater well-being to patients. The complementary strengths of all parties will inject new vitality into the health-care sector.”
Backstory
During the just concluded Forum of China Africa Corporation, Fidson Health signed an agreement with three Chinese firms to establish a new pharmaceutical plant project in the Lekki Free Trade Zone as part of efforts to combat HIV in Nigeria.
- The three Chinese companies involved are Jiangsu Aidea Pharma, Nanjing PharmaBlock, and the China-Africa Development Fund based in Beijing.
- The signing ceremony was led by Dr. Fidelis Ayebae, Founder and Managing Director of Fidson Healthcare Plc, along with key Nigerian delegates, including Dr. Babatunde Ipaye and Mr. Oshoke Ayebae.
- According to the statement, the joint venture among the four companies will explore investment opportunities within the pharmaceutical markets of West Africa, sharing resources and information to promote healthcare improvements across the continent. This initiative is expected to lead to building a manufacturing plant in the Lekki Free Trade Zone.
What you should know
Following the exit of major multinational companies in the past few years over rising inflation and exchange rate volatility, local and Asian firms have been seen filling the vacuum- through expansion of production capacity and outright building of new production.
Nigeria- home to the largest concentration of Africans in the world with over 200 million people presents a huge market to investors in the household and consumer goods industry. However, rising poverty levels coupled with inflation, weakness in the naira has made that future bleak for majorly Western multinationals. The National Bureau of Statistics (NBS) in 2021 stated that around 130 million Nigerians live in multi-dimensional poverty.
