The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria has expressed concerns about Nigeria’s foreign exchange scarcity, claiming that pharmaceutical industries will be unable to cope.
The group also ascribed the FX scarcity to the departure of numerous multinational pharmaceutical firms from the country.
The group voiced their concerns at a news conference in Lagos ahead of the 7th Edition of the Nigeria Pharma Manufacturers Expo, according to Nairametric.
The recent exit of large pharmaceutical multinationals such as GlaxoSmithKline (GSK) and Sanofi Nigeria Ltd underscore the severity of the forex problem.
GSK ended its 51-year presence in Nigeria in August 2023, while Sanofi left in November.
The Chairman of the Local Organising Committee for NPME 2024 and Managing Director of May & Baker, Mr. Patrick Ajah believes that a stable exchange rate is critical to the growth of the domestic pharmaceutical industry.
Ajah underscored the issues faced by the declining value of the Naira, which has discouraged investment and planning in the industry.
He said “Unless the value of the Naira is stabilized, achieving the country’s target of 70% local drug manufacturing will remain a mirage,” Ajah stated.
“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.”
“If we didn’t tamper with the currency, all the multinational companies would be here, and they would still be making more investment.
“Many companies are not able to cope. So, fixing our exchange rate is going to be the one single thing that will immediately reset where we are,” he added.
Ajah emphasized President Bola Tinubu’s newly issued Executive Order, which eliminates tariffs, excise charges, and VAT on specialized machinery, equipment, and raw materials in order to stimulate domestic production, has yet to go into force.
Ajah urged the government to take extra steps, including stabilizing the exchange rate, to attract and retain international investments.
