The Federal Government has announced plans to extend the Presidential Executive Order that supports local pharmaceutical manufacturing by two years. This move aims to reduce Nigeria's reliance on imported medicines and establish the country as a regional pharmaceutical manufacturing hub. The Minister of State for Health and Social Welfare, Dr. Iziaq Salako, made this disclosure at the 8th Nigeria Pharmaceutical Manufacturers Expo (NPME) 2026 in Lagos.
The current policy window of the Executive Order is set to expire in March 2027. The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMGMAN) has been advocating for a two-year extension to enable manufacturers to deepen investments, expand production capacity, and consolidate recent gains in local medicine production. PMGMAN Chairman Oluwatosin Jolayemi emphasized the need for policy consistency to support the growth of the industry.
Nigeria's pharmaceutical industry has made significant progress, with over 200 local manufacturing companies currently in operation. However, the industry still faces challenges such as high energy and production costs, supply-chain disruptions, and limited access to long-term financing. Jolayemi stressed that a competitive and resilient domestic manufacturing ecosystem is necessary to support Nigeria's ambition to become a regional pharmaceutical manufacturing hub.
The Federal Government has set a target of achieving 70% domestic production of essential medicines. The Director of Chemical and Non-Pharmaceutical Industry, Mr. John Okpe Oluwa, said that increased local production would provide a foundation for expanding Nigeria's pharmaceutical exports across West Africa and the wider African market under the African Continental Free Trade Area.
To support the growth of the industry, the government is considering interventions such as expanded tax exemptions, tariff waivers on raw materials and machinery, and incentives for local production of active pharmaceutical ingredients and excipients. The National Agency for Food and Drug Administration and Control (NAFDAC) has also been working to improve regulatory standards, with 37 local pharmaceutical manufacturing facilities currently undergoing retrofitting and construction upgrades to meet international standards.
Regulatory reforms, including the 5+5 policy, have helped reduce drug imports and encouraged local manufacturers to improve their standards. However, experts have warned against reversing the gains made in local pharmaceutical manufacturing and called for intensified efforts to produce vaccines and other critical health commodities locally. The African Medicines Agency has also emphasized the need for stronger regulatory cooperation among African countries to accelerate access to quality-assured medicines.
The PMGMAN has unveiled its Industry Self-Regulation Quality Plus project, which includes a five-year Medicine Security Industry Advocacy Strategy for 2027-2031, an industry laboratory, and a Data Repository and Learning Centre. These initiatives aim to strengthen quality capacity, industry intelligence, and evidence-based advocacy. The project is expected to be commissioned within the next six to 10 months.
Key points
- The Federal Government plans to extend the Presidential Executive Order supporting local pharmaceutical manufacturing by two years.
- Nigeria aims to achieve 70% domestic production of essential medicines.
- The pharmaceutical industry faces challenges such as high energy and production costs, supply-chain disruptions, and limited access to long-term financing.
