Why pharmaceutical multinationals are leaving Nigeria

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The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) has revealed the reason for the exit of several pharmaceutical multinationals from Nigeria.

At a news conference in Lagos, the group revealed that the challenges in the forex market have negatively impacted the local pharmaceutical industry, leading to the departure of companies like GlaxoSmithKline (GSK) and Sanofi Nigeria Ltd. in the past year.

Tribune Online reports that some multinational pharmaceutical companies including GlaxoSmithKline and Sanofi Nigeria Ltd, exited the country within the past year.

GSK discontinued its operations in Nigeria in August 2023, ending its 51-year presence in the country, while Sanofi exited Nigeria in November.

The Chairman, Local Organising Committee (LOC), NPME 2024, Mr Patrick Ajah, expressed concerns about the impact of forex scarcity on the pharmaceutical industry and the need for urgent action to address the issue.

The exit of these multinationals has raised concerns about the future of Nigeria’s pharmaceutical industry and the potential impact on the availability of essential medicines in the country.

Ajah said: “ Unless the value of Naira is fixed, achieving the country’s target of 70 per cent in local drug manufacturing will remain a mirage.

“The government will need to do certain things to achieve 70 per cent 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.

“If we didn’t tamper with the currency, all the multinational companies would be here and they would still be making more investment.

“But, if somebody brought his money when they were bringing the money, all the money from outside by multinational companies will have to go through the banking system.

“ I’m telling you because I was involved in it.

“And when it gets through the banking system, it will be at official rate.

“So, you brought in money to come and build a facility at the exchange rate of N316, and now you’re going to be remitting the money at N1,500 and something, and you can’t even find the dollar.

“Many companies will not be able to cope. So fixing our exchange rate is going to be the one single thing that will immediately reset where we are.”

Ajah called for increased government support for the local pharmaceutical industry.

According to him, with the right support, Nigeria can produce 70 per cent of the medicines it consumes.

Citing India as an example, he said that the country supported its domestic pharmaceutical industry, and today, India was notable for drug manufacturing.

“The Indian government has provided financial and technical assistance to local manufacturers, and has even intervened to secure technology from other countries,” he said.

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