The Coordinating Minister of Health and Social Welfare, Prof Muhammad Pate, stated that the Federal Government is focused on eliminating barriers to the importation of raw materials for local drug manufacturing.
Pate attributed the increased drug prices in the country to foreign exchange devaluation, which hinders manufacturers’ procurement of necessary materials and equipment.
Additionally, he noted that factors such as power supply, technical expertise, technology, supply chain efficiency, and regulatory environment also impact drug pricing.
The minister shared these insights during a webinar titled ‘Addressing the growing costs of medicines,’ hosted by TheCable in celebration of its 10th anniversary.
He mentioned , “There are two issues underlining what we are observing now. There is the forex devaluation on the supply side, affecting the ability to buy raw materials and equipment.”
The minister noted that financing of healthcare and affordability has been a longstanding issue for more than 40 years, and less than 10 per cent of Nigerians are covered under health insurance.
“This means many fund healthcare out of pocket. Many of us will be thrown into poverty if met with catastrophic health challenges like cancer and kidney failure because we don’t have a viable insurance platform,” he lamented.
Professor Pate highlighted that the current impact of global API price hikes and supply chain disruptions on Nigeria could have been mitigated if the country had built an industrial base for API and pharmaceutical production.
In response, President Tinubu has ordered the Ministry of Health to collaborate with the private sector to find viable solutions, according to Professor Pate. This move signals a commitment to explore innovative ways to address the challenges of sourcing and manufacturing essential medicines in Nigeria.
Pate mentioned, “We have had engagements with the pharmaceutical consultative forum and we are finalising an instrument from the government that will affect the fiscal policy constraints on the import of raw materials and manufacturing equipment.
“We are inviting several actors with the technology to partner with our local manufacturers so we have an industrial base as well. We have a viable market and we need to make a head start in that direction. On the demand side, a massive effort is underway to reform the health insurance landscape.
“We believe if we can expand the insurance landscape and have millions covered, the cost of diagnostics and care will not be borne by individuals and households but by a third party. The absence of a third party is why Nigerians are feeling the pinch from the rise in costs.”
The Executive Secretary of the Pharmaceutical Manufacturers Group of Manufacturers Association of Nigeria, Frank Muonemeh, on his part, noted that local manufacturers are doing all within their control to stem the rising prices of medicines.
“This is an opportunity for us to reverse the importation of pharmaceutical products,” he added.
Chisom Uchem, the Executive Secretary of the Anambra Primary Healthcare Development Agency, expressed her concern that the unavailability of drugs could lead to therapeutic failure.
She explained that if people are unable to obtain necessary medications, the treatments will inevitably fail. This underscores the critical need for access to essential medicines, as it directly affects the health and well-being of the population.
She stated, “It’s time for the government to encourage experts to research the use of our local herbal remedies for production.”
