Politics
Forex Shortage Drives Pharmaceutical Multinationals Out Of Nigeria – PMG-MAN
Forex Shortage Drives Pharmaceutical Multinationals Out Of Nigeria – PMG-MAN....KINDLY READ THE FULL STORY HERE▶
The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) expressed concerns on Sunday about the severe shortage of foreign exchange in the country, stating that it has significantly harmed the local pharmaceutical industry……. CONTINUE READING
The group cited forex fluctuations as a major factor behind the departure of some pharmaceutical multinationals from Nigeria.
During a news conference in Lagos on the upcoming 7th Edition of the Nigeria Pharma Manufacturers Expo (NPME), scheduled for September 4 and September 5, the group highlighted these issues.
In the past year, several multinational pharmaceutical companies, including GlaxoSmithKline and Sanofi Nigeria Ltd, have exited the country. GlaxoSmithKline (GSK) ended its 51-year operations in Nigeria in August 2023, while Sanofi left Nigeria in November.
Mr. Patrick Ajah, Chairman of the Local Organising Committee (LOC) for NPME 2024 and Managing Director of May & Baker, emphasized that a stable exchange rate is crucial for the domestic pharmaceutical industry’s growth. He noted that many companies are awaiting the implementation of a recently announced Executive Order.
On June 29, President Bola Tinubu signed an Executive Order removing tariffs and Value-Added Tax (VAT) on pharmaceutical imports. This order introduced zero tariffs, excise duties, and VAT on specialized machinery, equipment, and pharmaceutical raw materials to boost local production of essential healthcare products. However, the order has not yet taken effect.
Ajah stated, “Unless the value of the Naira is stabilized, achieving the country’s target of 70 percent in local drug manufacturing will remain a mirage. The government will need to take certain steps to achieve 70 percent local drug production. The recent fluctuations in the value of the Naira have made it difficult for companies to plan and invest. This is one major reason why multinational companies are leaving. It’s not the fear of subsidy removal.”
He continued, “If we didn’t tamper with the currency, all the multinational companies would still be here and making more investments. But, if someone brought in money at an exchange rate of N316 to build a facility, and now they have to remit money at over N1,500, and they can’t even find the dollar, many companies will not be able to cope. Fixing our exchange rate is the one single thing that will immediately reset where we are.”
Ajah called for increased government support for the local pharmaceutical industry, asserting that with the right support, Nigeria could produce 70 percent of the medicines it consumes.
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