Pharmaceuticals: FG secures $240m investment for local manufacturers

The Federal Government on Wednesday disclosed that it has secured a $240 million investment from a Brazilian pharmaceutical for local manufacturing of generic pharmaceuticals.

Minister of Health and Social Welfare of Nigeria, Ali Pate, who made this known during a press briefing in Abuja, did not state the name of the pharmaceutical firm, but added that, at least three pharmaceutical firms have indicated interest in investing in Nigeria.

Minister of Health and Social Welfare of Nigeria, Ali Pate

Pate, while stating that FG is making impressive progress to drive local manufacturing, further mentioned that two diagnostic companies will be establishing a manufacturing company in Lagos state and is expected to be launched in December 2024.

The minister, while reiterating government’s resolve to prioritizing local manufacturers, hinted that the proposed execute order of the federal government to reduce the high cost of medical will place a premium on imported products so as to drive the demand for locally made medical products and devices.

Minister of Health and Social Welfare of Nigeria, Ali Pate

He lamented that the country is currenetly over-reliant on import for raw materials and medical equipment.

To reduce import, the minister expressed the readiness of government to enforce the 5+5 policy of the National Agency for Food and Drugs Regulation and Control which stipulates that after pharmaceutical firms have marketed drugs for five years, they should domesticate their production. He expressed disappointment that existing companies did not adhere to this policy, continuing to market for five years without local production.

As part of measures to reduce the cost of production and create a friendly environment for manufacturers, Pate informed that government is working to streamline regulations and simplify the process that manufacturers follow to get their manufacturing company.

He also reminded that the 2024 budget already provides for a pooled procurement of key pharmaceuticals to subsidize cost.

To fortify the pharmaceutical infrastructures across the nation, the minister noted that government has initiated the construction of pharmaceutical-grade warehouses in 21 states in collaboration with Drug Management Agencies, adding that two more warehouses at the federal level are also underway, complemented by the installation of the Warehousing Management Information System (WMIS) – M Supply, in these 21 pharma-grade warehouses.

“This visionary project, commenced in October 2023, is slated for completion in March 2024, with a scheduled commissioning in April 2024.

“The implementation of WMIS is expected to significantly enhance accountability and transparency, ensuring the potency of public health medicines and other health commodities. This infrastructure development aligns with our commitment to improving health outcomes for citizens nationwide”, he added.

Olaitan Ibrahim

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