The Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, said over 70 new healthcare manufacturing companies with strong projects have already lined up to execute 22 large-scale projects in the country.
Prof Pate made this known in a message posted on his X handle on Friday.
He also said more than 10 value chain verticals have been established in-country.
He noted that the milestones are part of President Bola Tinubu’s resolute commitment in transforming the health sector from a consumption-driven model to one that creates jobs, enhances economic value, and strengthens domestic manufacturing capacity, as well as improving the productivity of the economy.
In October 2023, President Tinubu established the Presidential Initiative to Unlock the Healthcare Value Chain, and appointed Dr. Abdu Mukhtar as the National Coordinator of the initiative.
The initiative was established specifically with a mandate to increase local manufacturing of pharmaceutical products in Nigeria to at least 70 percent of what Nigerians consume by 2030, to increase the total direct full-time employees working in the life sciences manufacturing sub-sector to at least 50,000 from the current estimated workforce of approximately 20,000, and to establish at least two commercially viable plants to manufacture biologicals across the health sector, and to establish at least five medical supplies, pharmaceuticals, and diagnostic plants in the country over time so as to double Nigeria’s pharmaceutical market share in Africa to at least 15 percent.
The minister stated that since the establishment of the initiative, the President has signed an executive order into effect which was aimed at stimulating the domestic manufacturing of pharmaceuticals, test kits, medical textiles, and consumables.
He emphasised that the order equally incorporates market-shaping interventions to enable government procurement to prioritise local manufacturers.
“While it is right to acknowledge that some initial implementation challenges have occurred, they have now been addressed collaboratively with all the key stakeholders. I’m also pleased to know that this policy is now positioned to deliver on its intended objectives.
“To date, we have secured line of sight to significant investments over time from the European Investment Bank financing mechanism, in addition to signing a $1 billion MoU with the Afreximbank for a financing mechanism to support incoming manufacturers and domestic manufacturers in the health and life sciences sectors. The diligent and effective work of PVAC, under its indefatigable coordinator Dr. Abdu Mukhtar and his team, has already inspired five development finance institutions, in addition to the ones I mentioned above, to advance cooperation among themselves and with us on new dedicated financing platforms to support this effort to unlock Nigeria’s healthcare value chain.
“Additionally, over 70 new healthcare manufacturing companies with strong projects, backed by impressive business cases, have already lined up with 22 large-scale projects currently in active discussions with international financiers. More than 10 value chain verticals have been established in-country, including the manufacturing of rapid diagnostic test kits, which is exemplified by our signing of an MoU with South Africa-based Abbott Diagnostics, and also Colexa Codex, which is already manufacturing in Lagos,” he said.
Pate added that Abbott has agreed to establish a plant in Nigeria to manufacture rapid kits for malaria and several other diseases.
He further said, “Medical oxygen is another investment vertical being advanced, as seen in our partnership with the Global Gases Group, which is establishing a cryogenic air separation plant in Nigeria, and other supply chain support solutions, such as our recent agreement with Siemens Healthineers, a world-renowned company, to establishing an ultrasound assembly plant in our country.
“Active pharmaceutical ingredients is another important area of our sectoral investment focus, which is why I personally commissioned the Beta Lactam facility in Lagos State only a few days ago. Established by Jawa Investments, this landmark facility brings us closer to self-sufficiency in producing essential antibiotics like amoxicillin clavulanic acid locally, which is called augmenting under another company, ensuring supply chain security, but also reducing costs for consumers, particularly the most vulnerable populations.
“Over 700 young Nigerians have already secured quality employment through the Jawa facility, directly contributing to household incomes and lifting up their communities. This is the economic and social impact of medical industrialisation in action, job creation, return earnings, increased production capacity that can serve Nigeria and the African continent.”
He noted that other areas of intensive effort in the health sector are on localising the production of essential commodities, including vaccines (particularly using RNA and live attenuated platforms), long-lasting insecticidal nets, nutritional supplements, reproductive health products, and treatments for non-communicable diseases like hypertension and diabetes.
He said while some products may still need to be imported, progress is being made, with the goal of eventually manufacturing these locally.
He added that his journey, aimed at sustainable economic growth and improved welfare, is supported by regulatory bodies like NAFDAC and the Pharmacy Council of Nigeria, which are working to enhance their operational efficiency.
“This will take time, but we have started this journey. As we embark on this important journey for the sustainable growth of our nation’s economy and enhancement of the welfare of our people, regulators such as the National Agency for Food and Drug Administration and Control and the Pharmacy Council of Nigeria have already been tasked with enhancing efficiency and effectiveness in their operations.
“Our goal is to ensure a regulatory environment that is robust, facilitative, one that encourages local industry to thrive without undue constraints, and allow us to trade with other countries for products that we are not able to produce ourselves. And today we are now beginning to witness tangible outcomes from these efforts. For too long, Nigeria had relied heavily on imports for even the most basic healthcare commodities.
“As we advance this government’s commitment remains very clear. We will continue to support the pharmaceutical industry through policies that promote industrialisation, job creation, and economic growth, without necessarily limiting our ability to trade with other nations in our continent and outside our continent,” he said.
