President, Pharmaceutical Manufacturers Group of Manufacturers’ Association of Nigeria (PMG-MAN), Oluwatosin Jolayemi, has said that without the Federal Government implementing its policies regarding medicine security and self-sufficiency, Nigerians should not expect cheap medications.
Mr Jolayemi, who spoke at the 13th Annual Symposium/Excellence Award of the Health Writers’ Association of Nigeria (HEWAN) in Lagos with the theme “Dwindling Local Drug Production and High Cost of Essential Medicines: Rethinking Strategies for Growth,” said that in ensuring medicine security, creating an enabling environment that is driven by the right policies from the government must take the lead.
Jolayemi, represented at the occasion by the executive secretary of PMG-MAN, Mr Frank Muonemeh, stated that developing the right policies is only 10% of the work, but faithfully following through with these policies requires 90% political will, including a well-coordinated approach to political implementation.
PMG-MAN president highlighted other challenges faced by local drug manufacturers to include self-inflicted taxation, infrastructural deficits, access to foreign exchange, lack of patronage, policy inconsistency, and poor access to single-digit soft loans.
Mr Jolayemi, who envisions Nigeria facing another pandemic due to the bargaining power of the Naira and a population explosion, called on the government and the private sector to collaborate in ensuring national medical security and an integral part of the national security architecture.
He suggested imbibing the concept of medicine security developed by PMG-MAN, which asserts that Nigerians must have control over how their medicines are produced, from active pharmaceutical ingredients to excipients to finished pharmaceutical formulations, for attaining medicine sufficiency.
“Medical security emphasises the importance of ownership and leadership in achieving sustainability in access to medicine. It is built on five components: availability, accessibility, affordability, quality, and safety,” he added.
Chief Executive Officer of St. Racheal’s Pharmaceuticals and chairman at the symposium, Mr Akinjide Adeosun, stated that operating in Nigeria has proven to be extremely tough for pharmaceutical businesses due to a demanding economic environment, including variable exchange rates, hefty import levies, and bureaucratic impediments.
He stated that the monetary policy rate (MPR) by the Central Bank of Nigeria to reduce the high rate of inflation is no longer sustainable and urged that the government now focus on growth rather than inflation.
“The strategy of the federal government has been to increase MPR. No doubt, the governor of CBN, Olayemi Cardoso, has been able to use monetary tools to be able to manage the economy. However, after trying this for a year, and inflation is still high; the lending rate is also high, it is time to switch gears, he said.
“When you borrow money at an interest rate of about 38 percent to import drugs into the country, coupled with the high cost of fuel/diesel, clearing cost, import duties, and levy duties (as not all drugs attract zero percent). Import duties may be zero percent, but levy is about 20 percent; no business can survive.”
Mr Adeosun, however, urged the government to chase growth and leave inflation alone by reducing MPR to enable commercial lending rates to crash to a single digit from the present rate that is over 30 percent to stimulate economic growth.
“CBN has been increasing MPR for about a year without any concrete result. It is now time to leave inflation alone and start chasing growth. You cannot chase growth if manufacturers cannot borrow at a single digit,” he added.
Also, the national chairman, Association of Community Pharmacists of Nigeria (ACPN), Mr Adewale Oladigbolu, said the pharmaceutical sector is depressed and faced with a funding gap in billions of naira.
According to him, “government must come in heavily. The same kind of interventions seen in the petroleum industry should be done in the pharmaceutical sector. The government has great intentions to transform the industry, but those intentions have not been translated to practical means. It is time for government to take action by fulfilling its promises to the industry.”
Earlier, HEWAN President Chioma Obinna said that the theme became essential as a result of the soaring costs of medicines in the country, posing difficulties for persons with chronic illnesses and vulnerable Nigerians requiring quality healthcare services.
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