Why Pharmaceutical Multinationals Are Exiting Nigeria – PMG-MAN Explains
The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) has attributed the exit of several multinational pharmaceutical companies from Nigeria to persistent foreign exchange (forex) challenges and the unstable macroeconomic environment.
Speaking at a press briefing ahead of the Nigeria Pharma Manufacturers Expo (NPME), the Chairman of PMG-MAN explained that the scarcity of foreign exchange, coupled with sharp fluctuations in the value of the naira, has made it increasingly difficult for multinational pharmaceutical firms to sustain operations in the country.
According to him, most pharmaceutical multinationals rely heavily on imported raw materials, machinery, and active pharmaceutical ingredients (APIs), all of which require access to foreign exchange. The inability to source forex at predictable and affordable rates has significantly increased production costs, disrupted supply chains, and eroded profitability.
He cited the recent exits of major global pharmaceutical companies such as GlaxoSmithKline (GSK) and Sanofi Nigeria Limited, noting that their decisions were largely driven by the harsh operating environment rather than a lack of market potential.
PMG-MAN emphasized that Nigeria remains a large and viable pharmaceutical market due to its population size and growing healthcare needs. However, without stable forex access and supportive economic policies, multinational firms find it difficult to justify continued local manufacturing.
The group also acknowledged recent government efforts to support the pharmaceutical sector, particularly the Executive Order signed by President Bola Ahmed Tinubu, which provides for the removal of tariffs and value-added tax (VAT) on pharmaceutical raw materials, equipment, and machinery. While welcoming the policy, PMG-MAN noted that full implementation is still pending and its impact has yet to be felt across the industry.
In addition, PMG-MAN reiterated the need for long-term structural reforms, including improved access to forex, local production of raw materials, and targeted incentives to strengthen domestic pharmaceutical manufacturing. Drawing lessons from countries like India, the group stressed that sustained government support is crucial for building a resilient pharmaceutical sector.
The association maintained that with the right policies in place, Nigeria could significantly increase local drug production, reduce dependence on imports, and attract both local and foreign investment back into the industry.
Source: Daily Post and DateLine
