Key Highlights
Nigeria's pharmaceutical sector is attracting increased investor interest following government policy changes in 2023.
Local pharmaceutical manufacturing remains at approximately 38%, far short of the government's 70% target by 2030.
Government initiatives, including tax waivers on raw materials and equipment, aim to boost domestic production.
While some progress has been made in producing ready-to-use therapeutic food (RUTF), local production of other essential medicines lags.
Nigeria's pharmaceutical sector is experiencing a surge in investor confidence, but domestic manufacturing is struggling to keep pace, leaving the nation significantly dependent on imported drugs. This comes despite government efforts to ramp up local production and reduce reliance on foreign sources.
The increased investment follows a series of federal government policies and initiatives introduced in 2023 after the departure of multinational pharmaceutical giants like GlaxoSmithKline and Sanofi. These policies include an executive order waiving import duties and taxes on essential raw materials and equipment for local pharmaceutical production. Further measures involve pooled procurement initiatives, foreign exchange market adjustments, and the launch of the Presidential Initiative on Unlocking the Healthcare Value Chain (PVAC), which aims for 70% local pharmaceutical production by 2030.
According to the 2025 Joint Annual Review (JAR) health sector report, these policies are boosting investor confidence. However, the report also highlights sluggish progress in local manufacturing. Currently, local production of medicines and health commodities remains around 38%. This indicates that Nigeria continues to rely heavily on imports to meet its healthcare needs.
The report indicates some successes. Nigeria is performing well in the production of ready-to-use therapeutic food (RUTF), with over 11,700 metric tonnes produced locally. Additionally, 66 products have transitioned from importation to local production under NAFDAC’s 5+5 policy. However, local production of other critical health commodities is lagging. For instance, the country has not produced any malaria nets locally, despite the high prevalence of malaria in Nigeria.
Market watchers believe sustained government support and strategic partnerships are crucial to accelerate local pharmaceutical manufacturing. Increased investment in infrastructure, technology transfer, and workforce development will be essential to achieve the 70% local production target and reduce Nigeria’s dependence on imported medicines. Failure to address these challenges could undermine the nation's healthcare security and economic growth.
