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Nigeria’s indigenous pharmaceutical companies are stepping up to fill the gaps left by departing multinationals, aggressively expanding their production capacity to meet both domestic and regional drug demands.
Despite persistent regulatory and economic difficulties that are squeezing most companies, and without any significant improvement in industry operating conditions, this trend is occurring.
This expansion is led by companies such as Emzor Pharmaceuticals Industries, which has invested in new plants, and Fidson Healthcare, which has leveraged government incentives and research collaborations to ramp up essential medicine production.
Others such as Green Life Pharmaceuticals are hitting breakthroughs in WHO pre-qualified production with the launch of the country’s first WHO pre-qualified antiretroviral drug manufacturing plant. This allows Nigeria to produce and export high-quality medications across Africa and also positions the nation as a potential pharmaceutical hub under the African Continental Free Trade Agreement, reducing dependency on foreign suppliers.
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Alexander Okoh, former director general, of the Bureau of Public Enterprises said the combination of these efforts has also left indigenous firms controlling about 45 per cent of Nigeria’s anti-malarial drug production. Okoh, who delivered a keynote at the 2025 Economic Outlook and CEOs Forum of the Association of Industrial Pharmacists of Nigeria noted that some government policies and financial support have played a crucial role in fostering this growth.
The national drug policy’s emphasis on increased local production and reduced import dependency has encouraged investment in active pharmaceutical ingredients manufacturing, he said. The Central Bank’s Intervention Fund for the Pharmaceutical Sector has provided vital financial support, enabling local firms to expand facilities and adopt cost-effective processes.
Additionally, state governments are forming public-private partnerships to address infrastructure gaps, including power and logistics, further boosting the industry’s capabilities.“While the pharmaceutical industry in Nigeria has faced immense economic and regulatory headwinds, the resilience and adaptability of local players have ensured that the sector remains viable.
The exit of multinational firms has created an opportunity for indigenous manufacturers to scale up, attract investment, and drive innovation,” Okoh said. “With continued government support, policy reforms, and regional expansion under AfCFTA, Nigeria’s pharmaceutical industry is poised for a transformative comeback, positioning itself as a key player in the African healthcare market.”Nigeria’s pharmaceutical industry experienced a significant exodus between 2020 and 2024, with 12 multinational companies, including major players like Glasgow-SmithKline, Sanofi, and Pfizer, withdrawing from the market.
This departure was primarily caused by a combination of economic instability, regulatory obstacles, and operational inefficiencies, which collectively heightened Nigeria’s dependence on imported medicines. A major challenge was foreign exchange volatility and the heavy reliance on imports, as over 60 per cent of active pharmaceutical ingredients and excipients are imported.
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The depreciation of the naira and dollar shortages significantly increased production costs, making operations unsustainable for multinational companies with fixed global pricing. The CBN’s complex exchange rate system further created market uncertainties, negatively impacting importers and pharmaceutical companies. Regulatory hurdles, including delays in NAFDAC approvals for drug registrations and production lines, added to the operational difficulties.
Overlapping tariff policies and port congestion, along with inefficient customs practices, resulted in increased operational costs and supply chain disruptions. Security concerns and logistics challenges, such as drug theft during transportation and insecurity in key transport corridors, further complicated distribution. The high cost of energy, including frequent power outages and expensive diesel, made local production less competitive, adding to the financial strain on pharmaceutical companies.
Ken Onuegbu, national chairman, of the Association of Industrial Pharmacists of Nigeria argued that the other side of the coin is that these challenges have forced numerous local pharmaceutical companies out of operation. He urged that the government provide the enabling environment for pharmaceutical businesses to thrive while regulatory bodies work in tandem with the industries to support medicine security in the country. While many of the challenges persist, Nigeria’s pharmaceutical companies are striving beyond traditional manufacturing to embrace innovation and new business models.
A significant trend is the shift towards herbal and alternative medicine research, leveraging Nigeria’s rich biodiversity to develop locally sourced, plant-based treatments. The rise of e-pharmacy and telemedicine is also revolutionising drug distribution, enabling direct-to-patient models that improve access to essential medicines and bypass traditional supply chain inefficiencies.
Okoh believes these advancements are paving the way for Nigeria’s emergence as a regional hub. He stated opportunities abound in investing in active pharmaceutical ingredients, manufacturing, and finished pharmaceutical products which can reduce dependency on imports and mitigate forex-related pressures. “Key focus areas should include essential generic medicines such as paracetamol, antibiotics, anti-inflammatory, and cardiovascular drugs to address the rising burden of hypertension and heart disease. That’s the first pillar, looking at strengthening local pharmaceutical manufacturing capability,” Okoh explained.
