Nigeria’s pharmaceutical sector continues to struggle under the weight of import dependence, infrastructure deficits, and the ripple effects of prolonged economic instability. Recent fiscal policies—particularly the removal of petrol subsidies and exchange rate unification under President Bola Tinubu’s administration—have intensified inflation and exacerbated the cost-of-living crisis, compounding the challenges in the already fragile drug manufacturing and distribution landscape.

Government Launches Medipool to Ease Drug Shortages

In a bid to revive the sector and ease drug shortages, the Federal Executive Council (FEC) has approved Medipool, a pharmaceutical purchasing programme designed to utilise government procurement powers to negotiate better prices and ensure broader drug availability.

Unveiling the initiative, Ali Pate, Nigeria’s Coordinating Minister of Health and Social Welfare, explained that Medipool covers a broad scope, including:

• Procurement planning

• Supply chain and logistics management

• Distribution monitoring

• Quality assurance and regulatory oversight

• Support for local drug manufacturers

The initiative is seen as part of the government’s broader strategy to stabilize drug prices and reinforce the medical supply chain. However, experts argue that while Medipool has promise, its success hinges on more than just procurement—it requires systemic reforms across the sector.

Persistent Economic Barriers Threaten Progress

Despite the introduction of duty exemptions on pharmaceutical imports and raw materials, manufacturers continue to grapple with logistical bottlenecks, skyrocketing inflation, and a volatile exchange rate that significantly inflate production costs.

Though the Federal Government previously announced a stimulus package in 2023 aimed at revitalising local drug manufacturing, the impact on the ground remains marginal. For the sector to recover, stakeholders have repeatedly called for a more comprehensive approach, which includes:

• Direct infrastructure support (power, transport, and water access)

• Technology transfer from international partners

• Access to affordable financing and grants

• Reliable regulatory frameworks to encourage private sector participation

Without these reforms, the stimulus package and the Medipool programme risk becoming mere palliatives in the face of systemic issues.

Trust Deficit Stalls Stakeholder Buy-in

Industry players have voiced scepticism about the newly launched Medipool programme, citing painful memories of a similar failed government-led procurement pooling initiative introduced five years ago. That previous attempt faltered due to lack of transparency, operational inefficiencies, and non-compliance with agreed terms.

To restore confidence, the current administration must prioritise clear communication, honour commitments, and establish transparent mechanisms that ensure timely procurement, delivery, and payment processes. Engaging the Pharmaceutical Manufacturers Group and other key players early in the implementation phase will be crucial to preventing another misfire.

Pharmaceutical Shortages Fuel Black Markets and Fake Drug Crisis

One of the most pressing consequences of Nigeria’s pharmaceutical crisis is the proliferation of substandard, counterfeit, and unregulated drugs in both urban and rural areas. With essential and lifesaving medicines now out of reach for many Nigerians due to rising costs, unlicensed vendors and herbal concoction peddlers have moved in to fill the void—putting lives at risk.

This dire situation has eroded public trust in the formal healthcare system, as hospitals and pharmacies face increasing difficulty in stocking up on basic medications like antibiotics, insulin, antihypertensives, and vaccines.

Import Dependence Remains a Dangerous Vulnerability

Nigeria imports over 70 percent of its pharmaceutical needs, a reality that leaves the country at the mercy of global price shocks, shipping delays, and exchange rate instability. Local manufacturers currently account for less than 30 percent of the national drug supply, according to the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMGMAN).

This imbalance became especially pronounced during the COVID-19 pandemic, when global supply chain disruptions exposed the dangers of depending so heavily on imported medicines and vaccines. The health crisis underscored the urgent need for domestic production capacity that can shield the country from global pharmaceutical market volatility.

Multinationals Exit, Further Weakening Local Capacity

The Nigerian pharmaceutical landscape suffered a significant setback when GlaxoSmithKline (GSK) exited the market in 2023, ending 51 years of operations in the country. The company’s withdrawal left a vacuum in the supply of critical medications, including those used in respiratory care, pain relief, and chronic disease management.

Other global pharmaceutical giants, including Sanofi and Pfizer, have also scaled back their Nigerian operations or shifted to third-party distribution models. Their retreat is largely attributed to:

• Harsh macroeconomic conditions

• Unreliable electricity supply

• Foreign exchange access constraints

• Cumbersome regulatory procedures

This trend has made it even harder for Nigerian consumers to access reliable, branded medications, while also limiting opportunities for local partnerships, technology transfer, and employment.

The Way Forward: Practical Solutions for Reviving the Sector

To genuinely transform Nigeria’s pharmaceutical landscape, a multi-pronged strategy is urgently needed. This must include:

1. Strengthening Regulatory Institutions: Agencies like NAFDAC and SON must be empowered and better funded to ensure the safety, quality, and efficacy of medicines—local or imported.

2. Expanding Local Production Incentives: Beyond tax exemptions, the government should offer land grants, low-interest loans, and subsidised utilities to manufacturers.

3. Rehabilitating Infrastructure: Improving roads, ports, and especially electricity access would drastically reduce operating costs for pharmaceutical plants.

4. Building Human Capital: Investment in training pharmacists, lab scientists, and quality assurance professionals is vital to reducing reliance on foreign expertise.

5. Public-Private Partnerships (PPPs): Collaborations between government, academia, and private pharmaceutical firms can accelerate research and development in drug formulation and production.

6. Creating Transparent Procurement Platforms: Medipool must include real-time digital tracking systems and independent audits to maintain integrity and win stakeholder trust.

Conclusion

Nigeria’s pharmaceutical sector stands at a crossroads. The Medipool programme represents a bold attempt to stabilise drug supply and prices, but it must be supported by deeper structural reforms to be truly effective. Without decisive action to address infrastructure, regulatory, and financial challenges, the country risks further deepening its drug dependency and exposing its citizens to dangerous alternatives.

Now more than ever, the government must move beyond policy declarations and implement measurable, transparent, and sustainable reforms. Only then can Nigeria build a resilient pharmaceutical sector that delivers affordable and safe medicines to all its citizens.