DRUGS: THOSE IN THE PHARMACEUTICAL SECTOR SEEK PRIVILEGED ACCESS TO FOREX

· Demands that FG establish an N600 billion Pharma Manufacturing Development Fund.

Pharmaceutical sector participants yesterday asked special priority to access FOREX at rates that will moderate the final cost of medicines commodities of critical need in the nation.

In order to support the local production of vaccines, Active Pharmaceutical Ingredients (APIs) and Research & Development (R&D), among other things, they also urged the Federal government to establish an N600 billion Pharmaceutical Manufacturing Development Fund at 5% interest over a minimum of seven to ten years.

Concerns about the Nigerian pharmaceutical industry's heavy reliance on imports during a consultative meeting in Lagos with Dr. Ali Pate, the Coordinating Minister of Health and Social Welfare. Since production inputs are imported, the final product's price is determined by the FX rate.

Dr. Okey Akpa, the President of the Federation of Nigerian Pharmaceutical Industry Associations, or FeNPIA, made their demands known to the Minister. He said that the fund would support the growth of the country's pharmaceutical sector and lower the exorbitant cost, making them available, affordable to all Nigerians.

Local pharmaceutical businesses in Nigeria, according to Akpa, now import APIs in order to create their pharmaceuticals, and that the fund will be used for regulatory development, prequalification, bioequivalence research, the World Health Organization, and prequalification in the pharmaceutical manufacturing value chain.

“With benefits ranging from healthcare to FOREX profits and contribution to GDP and jobs, these monies would also fast-track Nigeria into being a natural hub for the pharma industry in Africa,” the president continued.

According to Akpa, who noted a few obstacles preventing the pharmaceutical, which makes raw materials continues to be hard to get.

A planned and well-coordinated approach to procurement, one that may involve public-private partnerships, between several governments and the pharmaceutical industry. “To achieve Universal Health Coverage in line with the NHIA Act 2022, there is a need to foster strong collaboration between the National Health Insurance Authority, local manufacturers, and overseas pharmaceutical distributors/importers,” he proposed. In order to spur industrial expansion, Akpa suggested a zero percent tariff rate for local manufacturers on pharmaceutical machinery, equipment, and accessories, as these items can command five percent to as much as twenty-five percent in certain situations. In contrast to the recent push by the Nigeria Customs Service (NCS) to add VAT to some pharmaceutical raw materials and even some finished pharmaceutical items, raw materials for pharmaceutical products are supposed to be free from VAT under current fiscal policy. In order to further lower the cost of pharmaceuticals, the high tariff on various inputs used in pharmaceutical manufacture needs to be quickly revised downward, he continued.

“As we look forward to a pharmaceutical industry that will make drugs affordable, I appeal to the federal government to encourage the players in the industry by addressing these challenges highlighted so far, review outdated laws that are hindering the growth of the industry, among others,” said Prince Julius Adelusi-Adeluyi, a former minister of health, in his speech.

In response to Muhammad Ali Pate, Coordinating Minister of Health and Social Welfare, stated that the President is making every effort in prosperity of the pharmaceutical sector and the availability of safe goods in Nigeria. “After hearing from industry participants about what has to be done, we have asked the attorney general to draft an executive order by the president. It is important for Nigerians to know that President Tinubu is paying attention and is worried about matters that impact their well-being. The most impoverished and vulnerable Nigerians would know since we have already allocated funds for the purchase of vital medications,” Pate promised.

Regarding the exorbitant cost of medications, the minister stated that the shortage of APIs has caused the price of pharmaceutical products to soar. “As the western world is struggling to resolve their issues, we too are putting in place mechanisms to procure with the local manufacturers, so that we can begin to provide solutions,” the minister continued.

Regarding the departure of pharmaceutical businesses, Pate gave assurances that the indigenous pharmaceutical manufacturing sector in Nigeria is thriving and that other international pharmaceutical companies will join the Nigerian market.

At least three significant companies have been investigating the possibility of coming to Nigeria to manufacture goods throughout the past three months. We really hope a lot more would do the same. Our community's industry will prosper. Even though things are not easy right now, we have confidence that the industry can overcome these challenges.

The minister remarked, “We have a listening government and we are taking actions to see how we can reduce the burden,” in reference to the VAT on imported goods and raw materials. Our goal is the prosperity of our regional manufacturers.