Nigeria’s Pharmaceutical Manufacturers At Global Competitive Disadvantage

The strong structural shifts and marketing trends of the global economy especially in the manufacturing and pharmaceutical sector has forced the former governor of the central bank of Nigeria, Prof Charles Soludo to question Nigeria’s ability to withstand the competition.

At a forum that was organized by the Association of Industrial Pharmacists (NAIP) in Lagos recently, Soludo pointed out that the pharmaceutical manufacturers of Nigeria might not be financially capable of competing with the world in terms of the cost of adjusting to risks of return on investment.

He disclosed that to date, none of the pharmaceutical companies in Nigeria WHO- certified.

According to him, statistical data shows that the global majors in the industry, which can be illustrated as a medium sized pharmaceutical company abroad are estimated at about US $l billion  which is less than 0.5% of Nigeria’s GDP.

If adjust to foreign firms, the 100 fragmented companies in the industry account for about 20% of domestic drug consumption.

He pointed that the indications of the struggles that Nigerian pharmaceutical companies are going is reflected in their production sources from other countries ie,India, China etc. he expressed his doubts if 60% of the 300 registered corporate members are into marketing distribution and export.

According to Soludo, reasons for the disadvantaged situation which includes influx of substandard drugs, inadequate funding from the government are insufficient and if addressed would serve merely as painkillers to malaria symptoms.

He urged that the industry be focused in their execution strategies and speed up activities in their analysis.