The Nigerian government has set a target to achieve at least 70% local production of essential healthcare products by 2030. This initiative aims to strengthen medicine security and reduce the country's reliance on imported pharmaceuticals. The goal was disclosed by Minister of State for Health and Social Welfare, Iziaq Salako, at the 8th Nigeria Pharma Manufacturers Expo in Lagos.
The expo, themed "Regional Manufacturing: Advancing Africa's Pharma and Life-Science Sovereignty through Localisation," brought together stakeholders in Nigeria's pharmaceutical and life-sciences sector. The event provided a platform for discussions on enhancing local pharmaceutical manufacturing and addressing challenges in the industry. Mr. Salako emphasized the need for Nigeria to develop domestic capacity to produce medicines, vaccines, diagnostics, and other essential health technologies.
To support local pharmaceutical manufacturing, the government has secured about $2 billion in financing commitments at single-digit interest rates through the Presidential Initiative to Unlock the Healthcare Value Chain (PVAC). Approximately 50 Nigerian health firms are in advanced discussions for funding. Additionally, 87 local manufacturers are benefiting from a presidential executive order granting zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients (APIs), and excipients.
The government's measures aim to strengthen domestic manufacturing and build greater resilience into Nigeria's healthcare supply chain. Mr. Salako noted that disruptions during the COVID-19 pandemic exposed the risks associated with dependence on global supply chains. He emphasized that medicine security is an issue of national resilience and sovereignty, requiring Nigeria to develop capacity across the pharmaceutical value chain.
The government is expanding local production of APIs, vaccines, biologics, diagnostics, and other health commodities. The National Institute for Pharmaceutical Research and Development (NIPRD) API Capacity Building and Concept Production Centre has been operationalized, and efforts are underway to develop commercial API manufacturing capacity. The government is also working to localize production of HIV, hepatitis, and syphilis diagnostic products.
To create a predictable market for local manufacturers, the government has established Medipool, Nigeria's national Group Purchasing Organisation for essential medicines and medical commodities. Medipool will aggregate procurement, negotiate bulk purchases, and improve supply-chain efficiency. Mr. Salako also encouraged pharmaceutical manufacturers, researchers, investors, and development partners to explore regional markets under the African Continental Free Trade Area (AfCFTA).
Achieving Nigeria's pharmaceutical manufacturing ambitions will depend on sustained investment, innovation, regulatory alignment, and access to larger regional markets. Mr. Salako emphasized the need for stronger collaboration among government, manufacturers, researchers, investors, and development partners to build a more resilient pharmaceutical manufacturing ecosystem in Nigeria and across Africa.
Key points
- The Nigerian government aims to achieve 70% local production of essential medicines by 2030.
- The government has secured $2 billion in financing commitments to support local pharmaceutical manufacturing.
- The establishment of Medipool will help create a predictable market for locally manufactured products.
