Sun Sep 29 00:07:12 UTC 2024: ## Local Pharmaceutical Companies Filling the Gap Left by Multinationals, but Forex Remains a Major Challenge

**LAGOS, NIGERIA** – The CEO of May & Baker Nigeria Plc, Patrick Ajah, has highlighted the challenges and opportunities facing local pharmaceutical companies in Nigeria, as multinational corporations continue to exit the country.

Ajah, in an interview with The Punch Newspaper, emphasized that while local manufacturers are stepping up to fill the void left by multinationals, the crippling impact of foreign exchange (forex) on the industry remains a significant hurdle.

“We are still paying duties [on pharmaceutical raw materials], it has not been implemented,” Ajah said, referring to promised government tax waivers. He explained that the forex issue is the primary driver of rising drug prices, with companies facing huge losses due to fluctuating exchange rates. “If the government does not deal with the FX situation, our currency will be messed up,” he warned.

Ajah also addressed the issue of backward integration in the pharmaceutical sector, acknowledging that while some progress is being made, it remains slow due to high capital requirements and technology transfer challenges. “We are not yet fully developed in terms of research and development,” he said, adding that the sector is largely dependent on importing active pharmaceutical ingredients (APIs).

Despite these challenges, Ajah expressed optimism about the future of May & Baker, highlighting the company’s significant growth in recent years. He revealed plans for expansion beyond Nigeria, including partnerships with French and English West African countries, as well as the development of a biovaccine facility within the next 10 years.

However, Ajah cautioned against celebrating the departure of multinational companies, stating that the reasons for their exit must be addressed to ensure the sustainability of the local pharmaceutical sector. He pointed to the “Japa syndrome” – the mass exodus of skilled Nigerians to foreign countries – as a major concern, impacting the ability of local companies to retain talent.

Ajah’s insights paint a complex picture of the Nigerian pharmaceutical industry, grappling with both opportunities and challenges. While local manufacturers are demonstrating resilience in filling the gap left by departing multinationals, the forex crisis and the “Japa syndrome” pose significant threats to the sector’s long-term growth. The government’s commitment to addressing these issues will be critical in ensuring a thriving and sustainable pharmaceutical sector in Nigeria.

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