The Minister of Health and Social Welfare in Nigeria, Muhammad Ali Pate, has said that the pharmaceutical sector in the country is poised for a major expansion with increasing interest from foreign investors. Plans are in place for four companies to construct facilities for producing medications, vaccines, and various medical equipment. Pharmaceutical companies like GlaxoSmithKline (GSK) and Sanofi have recently withdrawn from the country due to poor economic conditions, leading to an increase in the prices of vital medications. Pate disclosed that although some multinational companies have left, there is a new wave of interest from companies in Brazil, France, the United States and China looking to invest by establishing local factories.
Currently, four companies are actively working towards establishing their production facilities across the country. According to the minister, the government has created 40 Investment opportunities covering various areas of the healthcare industry. These opportunities include companies Manufacturing medical textiles, Intravenous fluids (IV fluids), and other crucial medical supplies. He is confident that companies that abandoned the country in its time of need will come to rue their decisions. He also mentions that the government plans to use these investments to support the industry’s growth on a global scale and create a conducive environment for these investments to prosper.
Pate slammed firms for prioritising profit over the country’s interests.
He observed that the government’s economic restructuring efforts would boost people’s buying capacity, leading to solid growth in the population’s purchasing power soon. Pate remained positive about the region’s future, confident that the nation’s 220 million-strong population will experience a resurgence in prosperity within the next five years. A thriving Economy and a surge in the demand for healthcare services, including pharmaceuticals and surgical procedures, will drive this revival. The minister condemned the companies that have left, claiming their main focus was on making money rather than truly investing in the country.
Similarly, Pate mentioned their arrival was driven by profit rather than a genuine fondness for the country. When faced with challenges, they quickly departed due to lacking productivity. Seizing the current crisis as a chance for growth, they plan to establish businesses in the medical industrial sector and remain resilient. The individuals who have left will need to find another destination. The minister elaborated on the continued investment in the industry by revealing that four companies focused on manufacturing Vaccines locally have recently partnered with the African Vaccine Manufacturers Alliance to receive support and resources essential for production.
New construction of medical facilities is scheduled to commence in 2025.
However, BVNL May and Baker and Ash Biomedical are two companies operating in the country. BVNL has formed a technical collaboration with Serum Institute for the fill and finish process. On the other hand, Ash Biomedical, located in Abuja, focuses on producing vaccines and test kits. Nasarawa State is home to a cutting-edge Biotechnology company, while AfriVax, located in Lagos, is focused on building a plant from inception to completion. He further highlighted future investment opportunities, such as a Brazilian firm looking to allocate $240 million to manufacture generic drugs. Construction of their facility is scheduled to commence in January 2025.
Simultaneously, different organisations are pushing to create medical textiles, with a major bed nets manufacturer considering establishing a plant in Lagos. Also, Pate explained that efforts are underway to produce IV fluids and other medical supplies to boost the industry. As confirmed by the minister, the government fully backs these investments with various policy initiatives. A notable move was President Bola Tinubu’s recent executive order lowering Tariffs on key raw materials and machinery needed in pharmaceutical production.
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This initiative explicitly targets materials for active pharmaceutical ingredients, testing equipment, and vital medical supplies. According to him, a newly created structure has been established to carry out the executive order. This structure is designed to guarantee that the policy achieves its intended outcomes. Given the country’s historical reliance on imports, the minister recognised the challenge of building up the nation’s pharmaceutical and medical device production. He emphasised the need to prioritise developing robust regulatory and scientific skills to guarantee the quality and effectiveness of domestically made drugs and vaccines.