Pharmaceutical industry: CBN, BoI float N200bn intervention fund

Towards enhancing the potential of the local pharmaceutical manufacturing industry in Nigeria, the National Agency for Drug Administration and Control, NAFDAC, in collaboration with the Central Bank of Nigeria, CBN, and the Bank of Industry, have developed a plan for a N200 billion Pharmaceutical Intervention Fund, PIF.The PIF initiative, which has received the blessing of President Goodluck Jonathan, is expected to create at least 250 jobs for pharmacists, microbiologists, marketers, and other stakeholders within the expanded pharmaceutical industry that will emerge.Speaking with Vanguard, NAFDAC Director General, Dr. Paul Orhii said the PIF which is being sourced by the Bank of Industry and the Ministry of Finance, has also been presented to the Minster of Finance, and his counterparts in the Industries and Health Ministries, as well as the Managing Director of the Bank of Industry.Orhii, who traced the genesis of the intervention fund, remarked that drug importation was a security matter because over 75 percent of essential drugs in Nigeria are being imported, arguing that locally manufactured pharmaceutical products would only gain international acceptance if the local manufacturing industry was upgraded to international standard.“It was realized that this systems upgrading takes a lot of money and the companies cannot get good loans with the current interest rates on short term loans which is not good for the industry. So I approached the National Security Adviser and told him the situation and he told me to work with the CBN, Bank of Industry so that as a deliberate policy like India, China and other countries have done, Nigeria can now become a net exporter of medicines, rather than the net importer as it is currently.“We met with the President who received the proposal very well and he directed that the Fund be sourced between the Bank of industry and the Ministry of Finance and managed such that it is made available to the pharmaceutical industry at affordable rate so that we can boost the industry.Further, Orhii emphasized the need to get the World Health Organisation, WHO, pre-qualification for Nigerian-made pharmaceutical products, said the move was essential towards enabling approval for use of such products anywhere in the world.“We need to find a way to ensure that Nigeria is self-sufficient in the production of essential medicines, and encouraging the local pharmaceutical industry to expand its facilities is one way to enable that happen so that we can cope with the situation.“Right now, one cannot insist that Nigeria buys its pharmaceutical products from the local manufacturing industry so that they will expand, especially when it has been shown that most of the drugs in the country, especially the locally manufactured drugs are fake and substandard.So if we are to buy only from our local industry right now, the international community would blackmail us that we are forcing Nigerians to take substandard drugs. It becomes a concern of
the entire world.He added that plans are currently underway to enable the WHO come to inspect and audit some of the leading pharmaceutical companies in the country.“Before we can begin to patronise locally manufactured drugs, the facilities have to be upgraded up to international standard. Many companies have upgraded already. Last year, we supervised Juhel pharmaceuticals in Anambra State in this aspect and right now, it is the biggest manufacturer of infusions in Africa.According to him, NAFDAC is no longer just waiting for companies to commit mistakes and then close them down. “What we are doing rather, is to work with these companies, show them how to do the business and even invite experts from outside the country to come and show these
companies the way to go.”He said the WHO will help the nation get pre-qualification for its products which can even be exported to other countries.“The Global Fund acquired $4.7 billion for donation of drugs to developing countries, and Nigeria with a population of 150 million, although a major recipient, nothing from this sum was spent here in the country because we do not have a single pre-qualified factory.In Africa only South Africa, Morocco and Uganda have pre-qualified drug manufacturing companies. Only those can sell medicines to other countries.”Further, the NAFDAC DG lamented that Nigeria could not participate in the international procurement for donated drugs because of the non availability of WHO pre-qualified products locally.“If we continue receiving donated drugs it will kill our local pharmaceutical industry. The highly subsidized antimalarials will kill the local industry. The dumping is not good for us. But with this intervention, once WHO helps to upgrade our facilities, and with the pharmaceutical intervention fund, we can now upgrade to a level where we are at par with other manufacturing companies in the world, and now turn around to request that the donated drugs to Nigeria are purchased from the country,” he concluded.

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