Opinions

Nigeria’s loss, South Africa’s gain: Medical cannabis industry and the cost of prohibition

THE global shift toward legalizing and regulating cannabis for medicinal and industrial use has been transformative. Countries worldwide are recognizing the economic, medical, and industrial potential of cannabis, leading to groundbreaking reforms. However, while African nations like South Africa and Lesothoreap the benefits of progressive cannabis policies, Nigeria remains shackled by prohibitive laws that stifle innovation, economic growth, and public health advancements. The contrast is striking: in the medical cannabis industry, Nigeria’s loss is South Africa’s gain. Nigeria’s cannabis laws remain among the most stringent in the world. For example, the National Drug Law Enforcement Agency (NDLEA) Act of 1989 criminalizes the cultivation, possession, sale, and use of cannabis in all forms. Severe penalties—including prison sentences of up to 15 years—even for minor infractions, have discouraged legitimate research and investment in the industry.

Despite its fertile land, well-suited for cannabis cultivation, Nigeria has failed to capitalize on this potential. The country is missing out on a booming global cannabis market projected to reach $102 billion by 2026 (Prohibition Partners, December 8, 2022).

Farmers in states like Ondo, Ekiti, and Oyo, where cannabis grows abundantly, remain stuck in a legal gray zone—facing crackdowns from law enforcement rather than benefiting from structured, government-backed economic opportunities.

In contrast, South Africa has embraced a forward-thinking approach to cannabis regulation. In 2018, the Constitutional Court of South Africa decriminalized the private use and cultivation of cannabis for personal consumption. The government subsequently introduced a regulatory framework allowing licensed cultivation, processing, and sale of cannabis for medicinal purposes. The South African Health Products Regulatory Authority (SAHPRA) oversees cannabis-based medicines, ensuring compliance with international standards. This policy shift has transformed South Africa into a hub for cannabis investment and research in Africa.

The benefits of South Africa’s cannabis reform: South Africa’s strategic embrace of cannabis regulation has yielded significant benefits:

Job Creation: The cannabis industry has generated thousands of jobs, particularly in rural areas with high unemployment rates. According to Prohibition Partners, the African cannabis market could create over 240,000 jobs by 2023, with South Africa at the forefront (Prohibition Partners, “The African Cannabis Report,” 2021).
Economic Growth: In 2021, South Africa exported R1.2 billion (US$80 million) worth of medicinal cannabis products to markets like Germany, Canada, and Australia. Revenue from the sector is projected to hit $314.9 million by 2025 (BusinessTech, “South Africa’s Cannabis Exports Hit R1.2 Billion in 2021,” 2022).
Foreign Investment: South Africa has attracted global cannabis companies such as Canopy Growth and Aurora Cannabis, leveraging its regulatory advantage and climate (CNBC Africa, “Global Cannabis Companies Eye South Africa,” 2020).
Medical Advancements: South African researchers are leading the development of cannabis-based medicines for epilepsy, chronic pain, anxiety, and cancer-related symptoms. A recent study in South Africa highlighted cannabis’s therapeutic potential (South African Medical Journal, “Medicinal Cannabis: A Review of Therapeutic Applications,” 2020).
Sustainable Agriculture: Cannabis has a lower environmental impact than traditional cash crops like cotton and tobacco. Notably, the Hemp Hotel project in Cape Town, built using hempcrete, showcases its diverse applications (Hemporium, “The Hemp Hotel: A Model for Sustainable Construction,” 2023). Nigerian Talent in South Africa’s cannabis industry:

Interestingly, Nigerian entrepreneurs have found success within South Africa’s regulated cannabis industry. Notable among them is Bassim Haidar, a Nigerian-Lebanese businessman described by Billionaire Africa magazine as ‘Nigerian cannabis mogul’ who has made significant investments in the sector through SafriCanna (Pty) Limited, which cultivates and exports medicinal cannabis. In 2022, SafriCanna sells all of its output for a whole year in advance due to booming demand for medicinal cannabis from Europe to Australia. The company also projected to increase production fivefold by 2024 (News 24, 11 September 2022). This highlights the potential for Nigerian talent—if only Nigeria’s legal landscape were more accommodating.

Lessons from the Telecommunications Industry: Nigeria’s failure to embrace cannabis reform mirrors its slow response in liberalizing the telecommunications sector in the early 2000s. While South Africa moved swiftly to create an enabling regulatory environment, Nigeria lagged behind. This early-mover advantage allowed South African firms like MTN and MultiChoice to dominate Africa’s telecom and digital entertainment industries, leaving Nigeria to play catch-up. The same pattern is repeating itself in the cannabis industry. South Africa’s proactive stance has positioned it as a leader, while Nigeria’s prohibitionist policies keep it on the sidelines. Unless Nigeria acts quickly, it risks missing out on another lucrative industry.

The way forward for Nigeria: Nigeria can still capitalize on the cannabis revolution, but urgent reforms are needed. The country has the resources, climate, and entrepreneurial drive to lead Africa’s cannabis industry. A well-regulated cannabis sector in Nigeria could create millions of jobs, generate billions of dollars in revenue, provide new opportunities for farmers and entrepreneurs, and improve public health outcomes by providing access to safe, effective cannabis-based medicines.

To achieve this, Nigeria must:

Amend the NDLEA Act to permit the regulated cultivation, production, and use of cannabis for medicinal and industrial purposes.
Establish a regulatory authority to oversee cannabis licensing and compliance.
Launch public awareness campaigns to educate citizens and policymakers on the economic and medical benefits of cannabis.

Nigeria’s reluctance to reform its cannabis laws is costing it dearly. While South Africa capitalizes on a thriving industry, Nigeria remains trapped in outdated prohibitionist policies that limit economic growth and medical progress. The country has the potential to be a major player in the global cannabis market and establish a formidable cannabis-based nutraceutical industry—but only if it takes decisive action. The time to act is now; otherwise, Nigeria’s loss will remain South Africa’s gain.