The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) has expressed concern over the country's lack of foreign exchange, claiming it has harmed the domestic pharmaceutical industry.
They cited FX swings as a major reason for the departure of some pharmaceutical multinationals from Nigeria.
The group expressed concerns at a news conference in Lagos about the upcoming 7th edition of the Nigeria Pharma Manufacturers Expo (NPME), scheduled for September 4 and 5.
According to NAN, certain global pharmaceutical companies, including GlaxoSmithKline and Sanofi Nigeria Ltd, have fled the country within the last year.
GlaxoSmithKline (GSK) discontinued operations in Nigeria in August 2023, ending its 51-year existence there, while French pharmaceutical manufacturing company, Sanofi, exited Nigeria in November.
The Chairman, of the Local Organising Committee (LOC), NPME 2024, Mr Patrick Ajah, said that for the domestic pharmaceutical industry to progress, a stable exchange rate was essential.
Ajah, a pharmacist and the Managing Director of May & Baker said that many companies are also on standby for the implementation and takeoff of the recently announced Executive Order.
On June 29, President Bola Tinubu signed an Executive Order removing tariffs and Value-Added Tax (VAT) on pharma imports.
The order introduces zero tariffs, excise duties, and VAT on specialized machinery, equipment, and pharmaceutical raw materials to bolster local production of essential healthcare products.
The order has yet to take effect.
Ajah said: “Unless the value of the naira is fixed, achieving the country’s target of 70 percent in local drug manufacturing will remain a mirage.
