Nigerian drug prices have skyrocketed, often by 100%, leaving households with severe financial strain. Due to supply chain interruptions, inflation, and the naira’s 72% depreciation since 2022, the cost of medications for common ailments like diabetes, high blood pressure, asthma, and Malaria has increased significantly. As an example, the cost of the antimalarial medication Coartem has risen by 135%, from ₦1,200 in early 2023 to ₦6,000 in late 2024. Likewise, the cost of insulin increased by more than 150%, and substitutes likewise became more expensive. Access to necessary care was further restricted by the 361% increase in asthma medications like Seretide.
One of the main causes of these price increases is Nigeria’s significant reliance on imported pharmaceutical ingredients—more than 80% of components are obtained from outside the country. Production and imports are becoming more expensive due to the FX crisis. Healthcare now takes precedence over holiday spending, forcing families to make difficult choices. Inexpensive medications may result in worse health outcomes and put a burden on the healthcare system, experts caution. Health experts and chemists emphasise the financial and emotional toll on patients, who frequently skip doses or use less effective substitutes.
This increase coincides with the notable devaluation of the Naira.
Some advocate for government action, including currency adjustments, assistance for regional pharmaceutical production, and financial aid for necessary prescription drugs, particularly during holidays. A number of issues, including inflation, currency devaluation, and reliance on imported raw materials, have been blamed for Nigeria’s soaring pharmaceutical costs. Essential medications like Amoxil and Ampiclox, for example, saw price increases of nearly 400% and 346%, respectively, between 2022 and 2023. This increase coincides with the notable Devaluation of the Naira and Inflation rates that have surpassed 27%. These factors have increased the operational expenses of pharmaceutical enterprises that depend on foreign components.
For years, the pharmaceutical sector in Nigeria has been susceptible to fluctuations in foreign exchange rates. The majority of active medicinal components and even Packaging materials are imported. The impact has been severe, since the value of the Naira has dropped by more than 70% in relation to the US Dollar since January 2024. These adjustments are in line with broader inflation patterns, which show sharp increases in the cost of drugs and other general goods and services. Recent resolutions by the Federal Executive Council seek to control Medicine pricing, promote domestic manufacturing, and slow the departure of pharmaceutical firms like GSK and Sanofi, who recently switched to third-party distribution as a result of unfavourable market conditions.
Rising expenses may be catastrophic for public health.
Useful models are offered by nations such as South Africa and India. Government Subsidies and incentives for domestic production have helped India’s generic pharma industry flourish and keep necessary medications within reach. In order to maintain fair pricing and control profit margins, South Africa uses a single exit price system for pharmaceuticals. In order to stop price gouging, Nigeria might implement comparable measures, such as creating Consumer Protection boards and offering subsidies and incentives for domestic manufacturing. In the absence of consistent actions, the rising expenses may result in catastrophic consequences for public health. Individuals already tell of forgoing basic necessities like food in order to pay for life-saving medications.
Long-term delay puts a load on an already vulnerable healthcare system, increases death rates, and exacerbates inequality. Furthermore, the financial strain may impede Nigeria’s long-term development by decreasing Productivity and exacerbating health inequalities. Financial, regulatory, and industrial policy initiatives must be combined to stabilise the Pharmaceutical Industry and safeguard Public Health in order to fully address this issue. In the face of escalating drug prices, Nigeria’s less fortunate individuals are currently being supported by government interventions and healthcare organisations’ campaigning.
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Plans to subsidise necessary drugs have been approved by the Nigerian government, especially for life-threatening illnesses like diabetes, high blood pressure, and asthma. This involves initiatives to stabilise prices as well as direct assistance for essential medical treatments during holidays when costs rise. Experts advise increasing funding for regional medicine manufacture and broadening access to public healthcare, even though these policies offer some respite. Taking inspiration from nations such as India, increasing the supply of generic drugs might drastically reduce costs, which would help the less fortunate. Additionally, to protect the most vulnerable groups from the harshest effects of inflation, targeted Cash transfer programs are advised during medical emergencies.