– As NAIP holds 2025 Economic Outlook and CEO Forum
Pharmaceutical industry leaders and an economic expert have urged pharmaceutical manufacturers and other sector players to embrace persistence and innovation to navigate the current economic turbulence affecting the country.
This call to action came at the 2025 Economic Outlook and CEO Forum of the Association of Industrial Pharmacists of Nigeria (NAIP), held on 13 March 2025, in Lagos. The forum brought together pharmaceutical manufacturers and industry leaders to analyse prevailing challenges and strategise on overcoming them.
With the theme “Surviving the Shocks and Taming the Tides by Pharmaceutical Industry Players,” the event provided a platform for thought-provoking discussions on economic uncertainties, regulatory concerns, and pathways for industry growth.
Speaking at the event, the President of the Pharmaceutical Society of Nigeria (PSN), Pharm. Tanko Ayuba, commended NAIP’s progress, leadership, and foresight, attributing its growth to visionary leadership. “NAIP, under the touch of Dr Lolu Ojo, accelerated in an unprecedented manner, and now, under the leadership of Ken Onuegbu, it continues to thrive,” he said.
He emphasised the crucial role of the manufacturing sector in shaping Nigeria’s pharmaceutical industry and underscored the need for continuous engagement with the government. “When the government discusses pharmaceuticals, they focus on those who drive economic activities rather than the pharmacists themselves. This is why industry players must advocate for policies that genuinely support the sector,” he added.
In his remarks, the Chairman of the occasion and Managing Director/CEO of Fidson Healthcare Limited, Dr Fidelis Ayebae, called for national transformation and ethical business practices. Commenting on Nigeria’s economic and political landscape, he lamented the lack of historical awareness and responsible leadership. He urged business leaders to cultivate humility and long-term vision.
“Nigeria has developed tendencies that destroy not only the present but also the future. We need to build a legacy that upcoming generations can emulate,” he stated. He criticised poor governance and self-serving leadership, advocating for ethical business practices and resilience in the face of adversity.
“The time to build a nation that values hard work and honesty is now. It’s not about the great things; it’s about the little things we have failed to do as a nation. How I wish politicians in this country would lead by example! If they did, things would begin to transform. Unfortunately, they allocate the nation’s resources to themselves at the expense of the people they serve. Do they expect the country to improve under such conditions? It’s not possible.”
Ayebae also urged pharmaceutical company owners to see themselves as servant leaders. “I see myself primarily as a servant to my staff and other stakeholders, not merely as a business owner.” He encouraged industry players to endure the current economic challenges, assuring them that the difficulties will not last forever. He further urged them to operate within legal and ethical boundaries. “Let’s do things within the confines of our legal space—things that help Nigeria, not things that destroy it,” he stated.
Earlier, the Chairman of NAIP, Pharm. Ken Onuegbu, provided an in-depth analysis of the economic turmoil affecting the pharmaceutical industry. He acknowledged that while the challenges are global, Nigeria’s pharmaceutical sector has been particularly hard hit.
According to Onuegbu, the fact that some investors in the industry are still standing today is a testament to their resilience, considering that many local companies have shut down due to their inability to withstand the economic shocks. He lamented the high cost of doing business in Nigeria, citing forex instability, power supply issues, and bureaucratic bottlenecks at the ports.
He said: “The average investor in the pharma industry has endured numerous shocks, from severe economic uncertainties and political and social turmoil to national disasters. You may wonder how we have managed to remain standing. Many of us have faced personal traumas, including kidnapping, declining health, and violent crimes. It is indeed a period of unprecedented struggles and upheavals. Whether in manufacturing or the importation of finished goods, the challenges remain the same—and they are severe.”
Onuegbu went on to highlight the difficulties across the entire pharmaceutical value chain, from maintaining a stable power supply for production to sourcing foreign exchange from the black market, dealing with rising diesel costs, and navigating the risks of distributing products amidst growing security challenges.
“At the ports, it seems as if everyone is waiting to exploit us. Three or four years ago, clearing a 40-foot container cost about ₦10 million; now, it costs between ₦20 million and ₦30 million. The regulatory authorities have also not made things any easier. The reality is that not all of us are tough enough to withstand these shocks—many local companies have shut down in recent years.”
Despite these difficulties, Onuegbu stressed that quitting is not an option. “A radical problem requires a surgical decision. When the going gets tough, the tough get going. Quitting is not the solution.” He urged industry players to persevere, reminding them that “there is always light at the end of the tunnel.”
“Let us hold onto the hope that one day, our country will become a force to reckon with in the pharmaceutical industry, similar to what we see in India, Malaysia, and China. One day, the pharmaceutical sector’s contribution to Nigeria’s GDP could reach 10 per cent or even higher. Let’s stay strong, remain focused, and avoid the temptation to step back—because taking a break will not make us champions,” he concluded.
The Indian Consul General in Lagos, Mr Chandramaouli Kumar Kern, underscored the strong pharmaceutical relationship between India and Nigeria. “India has been a consistent supplier and partner in Nigeria’s pharmaceutical industry. We believe in the importance of local manufacturing and stand ready to support Nigeria in developing a robust pharmaceutical manufacturing model,” he stated.
Kern emphasised that pharmaceutical production is not merely a business but a life-saving effort that requires careful planning and execution. He encouraged Nigerian stakeholders to embrace global collaborations, stating, “This is a global relationship. Nigeria has the potential to be a supplier to the entire African region and beyond.”
Meanwhile, the Pharmacy Council of Nigeria (PCN) has pledged continued support for industrial pharmacists. The Registrar, Pharm. Babashehu Ahmed, represented by Director Amina Umar, praised NAIP and other industry players for their resilience and commitment to excellence. “Your innovative spirit and determination have enabled you to navigate the complexities of the industry,” he said.
The PCN boss projected a positive economic outlook for the sector, citing a potential increase in demand for locally produced medicines, improved foreign exchange stability, and a more favourable business environment. “The Pharmacy Council of Nigeria remains committed to partnering with you to foster innovation and enhance access to essential medicines,” he assured.
Delivering the keynote address on “2025 Economic Outlook: Surviving the Shocks and Taming the Tides by Pharmaceutical Industry Players,” a former Director-General of the Bureau for Public Enterprises, Mr Alexander Ayoola Okon, stressed that Nigeria’s pharmaceutical industry must embrace resilience and innovation to navigate economic turbulence.
Okon described the operating environment in the industry as fraught with uncertainty, complexity, and ambiguity. He highlighted inflation, currency depreciation, and high energy costs as major factors increasing the cost of pharmaceutical production, making Nigeria less competitive globally. He noted that the naira’s depreciation, currently trading at around ₦1,570 to the US dollar on the parallel market, is exacerbating the difficulties faced by pharmaceutical manufacturers, who rely heavily on imported raw materials and machinery.
Despite these challenges, Okon identified several growth opportunities for Nigeria’s pharmaceutical industry. He pointed to the African Continental Free Trade Agreement (AfCFTA), with its $3.4 trillion market, as a chance for Nigerian pharmaceutical firms to expand exports and increase market share across Africa.
“The Nigerian Pharma Industry Plan aims to boost local production of Active Pharmaceutical Ingredients (APIs) to 40 per cent by 2030, reducing import dependence. Investing in local vaccine production for malaria, tuberculosis, and hepatitis can improve public health outcomes and reduce reliance on imports. The rise of telemedicine and online pharmacies offers new distribution models that enhance drug accessibility,” he said.
The event was attended by notable industry leaders, including the Director-General of NAFDAC (represented), the Chairman of the PSN Board of Fellows, and various association leaders and company CEOs.
