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The expectations for the reduction of drug prices by stakeholders in the pharmaceutical sector have been dashed following the delays in the implementation of the executive order on healthcare products issued by President Bola Tinubu earlier this year.
Despite the promise of lower production costs for local manufacturers through tax exemptions and tariff removals, stakeholders lamented that the lack of operationalisation of the policy was hindering the ability to deliver more affordable medicines to Nigerian consumers.
Speaking exclusively with PUNCH Healthwise , the pharmacists said the delays in the implementation had resulted in sustained high drug prices and limited relief for consumers.
The executive order, signed by the president on June 28, 2024, was designed to provide a much-needed boost to the local pharmaceutical manufacturing industry.
It introduced zero tariffs, excise duties, and VAT on imported pharmaceutical machinery, equipment, goods, and accessories.
The policy was aimed to lower the cost of production for Nigerian manufacturers and, in turn, reduce the high prices of medicines that have long burdened the average Nigerian patient.
However, some of the stakeholders in the industry in separate interviews with PUNCH Healthwise, said the non-implementation of the policy, which could transform Nigeria’s pharmaceutical industry by reducing production costs and making drugs more affordable, has contributed to persistently high medication costs, limiting access to affordable healthcare.
The pharmacists, while doing an overview of the sector in 2024, stressed the need for prompt action to realise the policy’s benefits and alleviate the financial burden on patients.
A former President of the Pharmaceutical Society of Nigeria, Olumide Akintayo, noted that the delay in implementation had hindered the realisation of the policy’s benefits, leading to sustained high drug prices and limited relief for consumers.
Akintayo stressed that delays in the process are keeping the cost of drugs high and stalling potential growth in the sector.
While commending the Federal Government’s initiative, the pharmacist expressed frustration over the significant hurdles that have slowed down the policy’s implementation.
Despite the executive order being approved early in 2024, Akintayo pointed out that progress had been painfully slow, with several key regulatory bodies, including the Nigerian Customs Service, the Ministry of Finance, and the Ministry of Trade, failing to implement the necessary steps to facilitate its execution.
“The executive order was approved in the first quarter of 2024, yet here we are, still talking about delays. It’s clear that despite the approval, nothing significant has changed. The relevant authorities have not been able to sort out the logistical and operational details of this policy.
“This delay is not just frustrating; it’s also preventing us from reaping the potential benefits of the policy, including a reduction in drug costs and an increase in local manufacturing,” he stated.
While the policy was designed to reduce the country’s reliance on imported drugs and boost local production, Akintayo noted that Nigeria’s pharmaceutical sector remains heavily dependent on imports, with over 70 per cent of drugs still coming from overseas.
He attributed this reliance to the challenges local manufacturers face, including the high cost of raw materials and packaging, much of which must be imported.
He said, “While the executive order seeks to boost local manufacturing, the reality is that the cost of manufacturing locally is still high. The tariffs on raw materials and packaging materials have increased by over a thousand per cent, and regulatory policies from agencies like NAFDAC are making things even harder for local manufacturers.”
The former PSN president also criticised the National Agency for Food and Drug Administration and Control for its recent policy shifts, which he claimed were counterproductive.
He pointed to NAFDAC’s traceability policy, which requires manufacturers to change the packaging of their products to comply with new traceability standards.
According to him, such regulations, while intended to improve product quality, would only raise the cost of production and inevitably lead to higher drug prices for consumers.
“Every time NAFDAC introduces a new policy, the cost of drugs goes up. The traceability policy, for instance, is another policy that will force manufacturers to invest tens of billions of naira to comply. These costs will be passed on to the consumer, making it even harder for Nigerians to afford medicines,” Akintayo said.
The pharmacist, however, stressed that while recent initiatives, including the executive order to boost local drug production, hold promise, the country needs a more comprehensive strategy to reduce drug prices and stimulate local manufacturing.
Akintayo called for a thorough and holistic review of the country’s pharmaceutical policies, emphasising the need for clear, consistent, and well-structured regulations that support local manufacturing.
He underscored the importance of removing bottlenecks in the system, particularly the exorbitant tariffs on raw materials and packaging materials, which currently make it difficult for local manufacturers to compete with imported products.
“The first step is to reform the tariff structure. Tariffs on raw materials have increased by over a thousand per cent, making it impossible for local manufacturers to thrive. By providing tax incentives, lowering tariffs, and creating a more supportive environment for local production, we can make Nigerian-made drugs more competitive,” he argued.
Akintayo also pointed to the need for a reduction in the regulatory burden imposed by agencies like the NAFDAC.
While acknowledging the importance of ensuring drug safety and quality, he suggested that the current regulatory framework is too restrictive and costly, hindering the growth of local pharmaceutical manufacturers.
“There needs to be a balance between regulation and facilitation. NAFDAC’s role in ensuring the safety and quality of medicines is crucial, but the agency must also find ways to streamline its processes to make it easier for manufacturers to comply. For example, the traceability policy, which requires manufacturers to change packaging and invest in new technologies, only adds to the cost of production,” he explained.
Akintayo also suggested that the government could work closely with private pharmaceutical companies to create incentives for local production, including providing grants, low-interest loans, and tax holidays for manufacturers who commit to producing essential medicines locally.
In addition to reforming drug production policies, the former PSN president stressed the need to recognise and empower pharmacists, who he believes are integral to improving Nigeria’s healthcare system.
He pointed out that pharmacists in the country, especially those in leadership positions in states like Anambra, have proven that they can drive significant improvements in health outcomes when given the opportunity.
He argued that, on a national scale, pharmacists should play a more central role in healthcare decision-making, particularly in areas such as drug distribution, local production, and immunisation.
He called for the establishment of a ‘Presidential Committee on Pharmaceutical Sector Reforms’ that would oversee the implementation of policies aimed at improving the pharmaceutical industry and ensuring that the interests of pharmacists are adequately represented in health sector reforms.
“Pharmacists should be at the table when decisions are being made about healthcare policy. They are the experts in drug production and distribution, and they have a crucial role to play in improving access to affordable medicines,” Akintayo said.
He also suggested that the government should implement a national postgraduate fellowship programme for pharmacists, similar to those in other countries, to ensure that the workforce is equipped with the skills and knowledge to lead in areas like drug manufacturing and quality assurance.
Corroborating him, the Vice Chairman of the Pharmaceutical Society of Nigeria, Ogun State chapter, Olumide Obube called on state governments to take a more active role in supporting local drug production and improving healthcare delivery.
Obube, who is also the co-founder of Health Value Pharmaceutical Limited, urged the government to create policies that support local drug manufacturing and the integration of pharmacists into healthcare leadership roles.
Speaking on the executive order by the president, the pharmacist said the delays in its implementation, coupled with unresolved regulatory hurdles prevented meaningful progress, leading to continued high drug prices and the stagnation of the local pharmaceutical industry.
He said the challenges facing the sector include delayed implementation of the executive order, regulatory bottlenecks, and inefficiencies.
According to him, inflation, currency devaluation, and high production costs continued to drive up drug prices, making essential medicines unaffordable for a significant portion of the population.
“The persistent high cost of drugs is attributed to the stalled implementation of the Executive Order. There is a need for prompt action to realise the policy’s benefits and alleviate the financial burden on patients.
“The introduction of zero tariffs and tax exemptions on pharmaceutical machinery and inputs aimed to reduce production costs and encourage local manufacturing. Although implementation delays persisted, the policy demonstrated a commitment to sectoral growth,” he said.
One of the most significant challenges facing the sector remains the issue of substandard and falsified medicines, Obube pointed out that the delayed implementation of the policy has made it difficult to tackle this issue effectively.
Local production, he argued, would allow for better monitoring of quality standards and a reduction in the prevalence of counterfeit drugs.
“The presence of counterfeit medicines is a major concern. Local manufacturing is the key to ensuring that Nigerians have access to safe and effective medicines. But until the government acts on policies that support this, we will continue to battle with the consequences of a weak regulatory system,” he stressed.
Looking ahead to 2025, Obube recommended that the pharmaceutical sector focus on achieving self-sufficiency in essential medicines production, improving accessibility and affordability, and enhancing quality assurance.
“These targets will require strategic alignment across various stakeholders and comprehensive implementation plans,” he noted.
The pharmacist also emphasised the need for collaborative efforts by government, private sector, and international partners to achieve the targets.
He added, “By aligning efforts across stakeholders, the sector can not only drive economic growth but also significantly improve healthcare outcomes, ensuring that every Nigerian has access to affordable, high-quality medicines.”
In terms of opportunities, he identified an increased focus on producing essential medicines locally, reducing dependency on imports, and boosting self-sufficiency.
He also suggested the adoption of digital health solutions, such as e-pharmacies, AI-driven drug discovery, and blockchain for supply chain transparency.
“Leveraging the African Continental Free Trade Area to access broader markets and position Nigeria as a pharmaceutical hub in Africa is also crucial,” he said.
Also speaking, a consultant pharmacist at the Olabisi Onabanjo University Teaching Hospital, Sagamu, Ogun State, Dorcas Bamidele said Nigeria’s health infrastructure remains underdeveloped, and access to affordable drugs remains limited, particularly in rural areas.
She noted that without robust distribution networks, many Nigerians continue to struggle with insufficient access to essential medications.
The pharmacist explained that this high cost of drugs further worsens this problem, making it nearly impossible for some Nigerians to afford even the most basic treatments.
“The distribution system is still weak, and the prices of medicines are just too high for most Nigerians. The government needs to do more to make healthcare accessible to everyone, especially in underserved regions,” she stated.
On focus for 2025, Bamidele argued that with sustained efforts, the country’s pharmaceutical sector can achieve self-sufficiency in drug production, reduce dependency on imports, and ultimately improve access to affordable medicines for all Nigerians.
She said, “We have the potential to produce our own medicines and reduce the burden on the healthcare system. But we need the government to play its part by ensuring that policies are implemented in a timely and effective manner.
“The target for 2025 should be clear: we need to reduce our dependence on imported medicines and make healthcare affordable for all Nigerians. We can achieve this, but only if we implement the right policies and work together with the private sector to overcome the current challenges.”
