Executive Order: PMG- MAN Seeks Clear Timeline, Stable Naira for 70% Drug Production in Nigeria
Several days after the signing of the executive order, the Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria (PMG-MAN) has posited that a clear timeline and commitment from the Federal government were crucial for the effective implementation of the recent Executive Order signed by President Bola Tinubu on pharmaceuticals and medicals.
They also argued that unless the value of the Naira is fixed, achieving the country’s target of 70% in local drug manufacturing would remain a mirage.
President Bola Tinubu had signed an Executive Order aiming to boost local production of healthcare products and reduce costs.
Addressing journalists in Lagos on the forthcoming 7th Edition of Nigeria Pharma Manufacturers Expo, NPME, billed to hold 4th to 5th September, 2024, they stated that it is not enough to make an executive order without a timeline. According to them, "Delays could lead to drug shortages."
The PMG-MAN maintained that the most critical factor for the success of the domestic pharmaceutical industry is a stable exchange rate.
The Chairman, Local Organising Committee (LOC), Pharm Patrick Ajah who argued that the government will need to do certain things in order to achieve 70 percent local drug production added that the recent fluctuations in the value of the Naira have made it difficult for companies to plan and invest.
According to him, there was need for the government to follow up and make sure that it’s done. Nobody has engaged us on the process. Let me be honest, if the government does not ensure implementation of this, it can turn around to be negative. Many companies are waiting for the implementation. So, what is going to happen soon is that if the implementation doesn’t start, many of us who are waiting so that we’ll benefit from this will not import things. I hope the government gets to understand this because I’m telling you already, things that we’re supposed to immediately start importing, I say wait, so that we understand when this executive order will come into place and be sure that we’ll benefit from it.
If we keep delaying the things that companies should have placed order for, there will be scarcity. And if the implementation doesn’t start immediately, we’ll have a situation where you do not know where we’re going.”
This is one major reason why multinational companies are leaving. It’s not the fear of subsidy removal. If we didn’t tamper with the currency, all the multinational companies would be here, and they would still be making more investments. But if somebody had brought his money, when they were bringing the money, and I’m telling you because I was involved in it, all the money that was brought from outside by a multinational company would have to go through the banking system. And when it gets through the banking system, it will be at the official rate. So, you brought in money to come and build a facility at the exchange rate of ₦316, and now you’re going to be remitting the money at ₦1,500 and something and you can’t even find the dollar. Many companies will not be able to cope. So fixing our exchange rate is going to be the one single thing that will immediately reset where we are.”
Ajah, who is also the Managing Director of May&Baker, also highlighted the negative impact of foreign exchange scarcity on the industry, stating that many companies are waiting to see if the recently announced executive order will be implemented before placing import orders. He advocated for increased government support for the local pharmaceutical industry, stressing that with the right backing, Nigeria can produce 70 per cent of the medicines it consumes. He maintained that a clear timeline and commitment from the government are crucial.
Ajah pointed to India as an example of a country that has successfully supported its domestic pharmaceutical industry. "The Indian government has provided financial and technical assistance to local manufacturers, and has even intervened to secure technology from other countries."
He said that the most effective way to combat counterfeiting is to boost local production and reduce reliance on imports. NAFDAC, Nigeria’s drug regulatory agency, is acknowledged for its efforts, but faces limitations due to a lack of resources.
On the topic of local capacity, Ajah acknowledged that some progress has been made. However, many companies lack the financial resources to invest in new facilities or upgrade existing ones. The recent devaluation of the Naira has further exacerbated this problem. He further called for a reduction in interest rates, stating that current rates, which are as high as 30 percent are a major barrier to investment in the industry.
Speaking, the Executive Secretary of PMG-MAN, Pharm Frank Muonemeh, who provided more insights into the issues, said Nigeria is already on the right track, with local manufacturers currently producing 40 percent of the medicines used in the country. He highlighted partnerships between state governments and local companies as a positive development.
The Executive Secretary called for government support similar to that which has been provided to other sectors, such as cement and petroleum. He argued that a strong domestic pharmaceutical industry is essential for national security.
Muonemeh cited the example of India, which prioritised its domestic industry during the COVID-19 pandemic. He urged the Nigerian government to adopt a similar approach.
One success story highlighted by Muonemeh is the production of essential medicines. Due to government import restrictions, there are now six companies in Nigeria that manufacture these drugs, eliminating the need for imports.
Muonemeh was optimistic that Nigeria could achieve the goal of producing 70 percent of its own medicines with the right government support, adding that increased exports from the domestic pharmaceutical industry would also help to alleviate the country’s foreign exchange challenges.
Speaking on the 2024 Edition of NPME, with the theme "40 Years of Advocacy: Fostering Partnership and Innovation to Unlock the Pharma Manufacturing Value Chain in Nigeria, Central & West Africa", the Executive Secretary said their ambitious goal is to drive Nigeria towards self-sufficiency and medicine security, aiming to reverse the country’s dependency on imported medicine from 70% to 70% locally produced. He said the 7th NPME 2024 is the flagship expo and the largest pharmaceutical manufacturing exhibition in Central and West Africa, organised by PMG-MAN and partners, GPE India.
Experts predict that the Nigerian pharma space would be the next frontier for smart investment and trade, with great but largely untapped potential to contribute to national and regional development.
To unlock this potential, the group organize a biennial Pharma Expo and Exhibition, focusing on the latest pharma technology, machinery, equipment, Active Pharmaceutical Ingredients (APIs), and showcasing locally manufactured medicines, diagnostics, and consumables.
Muonemeh said the theme was chosen to enable robust and comprehensive stakeholder engagement in the industry. It focuses on positioning the industry for global competitiveness and becoming the pharma manufacturing hub for Africa. Given the exit of multinationals and the rising cost of medicines due to macro and microeconomic dynamics in Nigeria, this theme is timely and forward-thinking. It calls for new strategies to achieve self-sufficiency in medicine production, emphasising partnerships and innovative approaches to unlock the pharmaceutical manufacturing value chain.
Key to driving these efforts is the implementation of SMART policy frameworks to stimulate sustainable industrialisation of the sector. The pandemic reminded us of the need to prioritise local pharmaceutical manufacturing, as there is a strong nexus between medicine security and national security, exemplified by vaccine nationalism.
"The recent economic challenges have pushed us to innovate, repurpose, and upscale our facilities to be more competitive and responsive in closing the gap in medicine access. Members are making SMART investments, building new greenfield facilities, acquiring machinery, and exploring innovative partnerships and technology transfer opportunities. The recently pronounced presidential executive order on the industry and existing policies have the potential to revolutionise the sector. However, this will only be attainable with the government’s faithful implementation of these policies and a speedy revamping of the pharmaceutical infrastructure. NPME offers a platform for robust discourse on these subjects."
He said the event, which is a must-attend event for all actors in the pharmaceutical manufacturing ecosystem and potential investors in the pharmaceutical space, offers a rare opportunity for productive networking and B2B engagement among all stakeholders, including regulators, policymakers, professionals, ancillary companies, academia, students, development partners, bilateral organisations, researchers, and NGOs. Participants are also expected to visit the PMG-MAN’s website for registration.
Source: Vanguard
