Nigeria’s Pharmaceutical Industry Expands with Increased Local Investments

Nigeria’s pharmaceutical companies are ramping up investments to tap into growing local opportunities, driven by the exit of foreign manufacturers and the high cost of imported medicines. Key players like Fidson Healthcare, Ama Medical Manufacturing, and Swipha are expanding their operations, focusing on local drug production and addressing critical medical shortages.

Fidson Healthcare, Nigeria’s largest drugmaker, raised N20 billion in April 2024 to expand into treatments for pediatric cancer, hypertension, and other disorders. Ama Medical is capitalizing on the African Continental Free Trade Area (AfCFTA) by investing in advanced automation technology to manufacture IV fluids and other medical products.

The sector is also seeing strong government support, with local production rising from 30% to 40%, according to Moji Adeyeye, Director-General of NAFDAC. Despite challenges like naira devaluation and supply chain constraints, the Nigerian pharmaceutical market is projected to grow at a compound annual rate of 7%, reaching $3.6 billion by 2026.

Local manufacturers are also collaborating with the National Health Insurance Authority to brand 33 products for health insurance purposes. However, the industry continues to face hurdles, including reliance on imported raw materials, which account for 70-80% of production costs.

Efforts by the African Development Bank (AFDB) to boost health infrastructure and pharmaceutical production in Africa are supporting Nigeria’s ambitions to grow its local manufacturing capabilities and reduce reliance on imports, with the goal of producing 60% of vaccines locally by 2034.