Daily-Need Group, a key player in Nigeria’s pharmaceutical manufacturing sector, has come a long way since its inception in the 1960s as a small medicine store. In this exclusive interview with Adebayo Oladejo at the company’s corporate head office in Lagos, Mr Oluwatosin Jolayemi, the company’s group managing director, sheds light on the company’s evolution, its strategic approach to growth, and the pressing challenges faced by the pharmaceutical industry in Nigeria.
From power and water self-sufficiency to addressing the critical shortage of skilled human capital, Jolayemi—who is also the chairman of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN)—discusses how these obstacles are impacting local manufacturing and the steps Daily-Need Group is taking to overcome them. Excerpts:
Can you give us a brief history of Daily-Need Group and how the company has evolved under your leadership?
Daily-Need Group started in the 1960s as Matthew Medicine Store, a small retail medicine outlet. In the late 1960s, it transitioned to Daily-Need Chemist. By 1970, the company expanded its operations by starting a factory in Surulere, still operating under the name Daily-Need Chemist. In 1972, the company took a significant leap by building a multipurpose factory, marking its transition from a simple pharmacy to a full-fledged manufacturing entity.
Over the years, Daily-Need Group has evolved from a small trading company into a leading player in the pharmaceutical manufacturing sector. This present manageament has maintained this growth trajectory, focusing on expanding our production capacities and reaching wider markets. Our focus has always been on quality and innovation, which has kept us ahead in the industry.
What were the founding principles of Daily-Need Group, and how have they shaped the company’s vision and operations?
The founder of Daily-Need Group, Otunba (Dr) Matthew Oyin Jolayemi, began as a trader but soon realised that he was not attaining the level of self-fulfilment he had always aspired to through trading alone. This led him to venture into manufacturing, aiming to create a brand that could become a household name across the country.
This vision still guides us today. We aim to identify simple therapeutic molecules and formulations often overlooked by larger pharmaceutical companies. By focusing on these areas, Daily-Need Group provides essential and accessible solutions that meet the growing demands of the industry. This philosophy continues to shape our operations and sets us apart in the market.
How does Daily-Need differentiate itself in the competitive pharmaceutical and consumer goods market?
At Daily-Need Group, our greatest selling point is the quality of our products. We prioritise integrity, quality, and transparency, and these principles guide everything we do. While we don’t have the big brand names to compete with, our commitment to exceptional quality ensures that our products—whether Rexall (Paracetamol) or De-deon’s Syrup of Haemoglobin—compete with the best in the market. We encourage people to try our products because we are confident they will experience a level of satisfaction that fosters loyalty to our brands.
What are some key challenges the company faces in the Nigerian pharmaceutical and FMCG sectors, and how have you been overcoming them?
The challenges facing the pharmaceutical sector are widespread and not unique to this industry. These include foreign exchange shortages, high borrowing costs, poor infrastructure, and unstable power supply—common issues across most manufacturing sectors in Nigeria.
However, one specific challenge within the pharmaceutical industry is the shortage of skilled human capital. Many young professionals trained in pharmaceutical sciences are not pursuing careers in manufacturing, opting instead for sectors like banking, telecommunications, or even migrating abroad. This shortage of competent professionals has made it difficult to find experienced personnel for vital roles.
To address the power issue, we disconnected from the national grid over a decade ago and now generate our own power and water. Additionally, we ensure that all our waste is properly treated before disposal, contributing to our green initiatives and social responsibility.
For human capital development, we invest in training young people who intern with us, sponsoring some for further education and offering them employment afterwards. We also collaborated with experts from India when building our factory, ensuring skills transfer to indigenous workers. This initiative trained over 60 people, although retaining them has been challenging, as many left once the factory was completed. Nevertheless, we view this as part of our contribution to the industry, improving skills and knowledge within the local workforce.
Financially, we approach funding cautiously. We carefully assess the need for external funding, ensuring we only borrow when necessary and have a solid repayment plan. By combining our internally generated funds with external capital, we maintain financial discipline and mitigate risks, ultimately ensuring the sustainability of our projects.
What role does innovation play in your company’s strategy, and how do you ensure that Daily-Need Group stays ahead of trends?
Innovation in the pharmaceutical sector requires significant investment, with most of the focus today on biologics, injectables, and vaccines. While we’re not yet fully engaged in that space, our current focus is on offering high-quality products that meet market demands. We aim to bridge the gap between imported goods and local production, especially in Nigeria and West Africa.
However, I believe businesses need to get the basics right before advancing into more complex innovations. Our approach is to build a solid foundation first, ensuring we can scale sustainably before venturing into uncharted territories.
Have any strategic initiatives or partnerships recently strengthened the company’s position in the market?
Five years ago, we decided to focus solely on manufacturing, acknowledging that we weren’t experts in distribution or marketing. As a result, we partnered with WWCV for distribution and another company for marketing, allowing us to concentrate on our core competency: manufacturing. This strategic alliance has helped streamline operations and focus on what we do best.
Congratulations on the recent award won by the company. Could you share the significance of this recognition for Daily-Need Group and what it means to you as the Group Managing Director?
The Golden Brand Corporate Award reflects how we view our business. We believe in building a strong corporate image and investing in our human capital. The recognition shows that people are observing our efforts and appreciating the work we do. It’s a reminder to continue striving for excellence, even if the acknowledgment is not immediate.
How does this award reflect the company’s efforts and values, and how will it influence your strategy moving forward?
Our focus at Daily-Need Group extends beyond business profits. We aim to meet society’s health needs while also caring for our staff’s well-being. We foster a positive work environment with team-building events, cultural activities, and regular engagements that promote interpersonal skills and corporate bonding.
We take mental and physical health seriously, ensuring our staff feel valued and supported. As part of this, we’ve raised wages, provided transport subsidies, and invested in staff well-being. This commitment has led to high staff retention rates and a positive work culture, translating into greater company loyalty and performance.
What are your thoughts on the current state of the Nigerian pharmaceutical industry, and what opportunities do you see for growth and development?
The Nigerian pharmaceutical industry has huge potential, and the government is making strides to unlock the value chain. NAFDAC has introduced a 5+5 policy, requiring importers to begin local production five years after registering imported products. This policy offers significant opportunities for local manufacturers to scale operations and engage in contract manufacturing.
Currently, local manufacturers account for about 45 per cent of the market, with imports making up 55 per cent, especially for essential products. The industry can grow by producing generics locally and collaborating with international companies for innovative products. This will benefit both parties, improve the overall capcity of the industry, and boost technology transfer. However, policymakers must engage with the industry to fully realise these opportunities.
What are your plans as a company for 2025, and where do you see Daily-Need Group in the next five to ten years?
In 2025, we aim to significantly increase our market share, ideally doubling or tripling our current volume. A major focus will be on enhancing our distribution system to ensure wider product availability.
Looking ahead, I see Daily-Need Group as one of the best-run businesses in Nigeria—not necessarily the largest, but the most efficient in quality and impact. Success for us means making meaningful contributions to society through healthcare partnerships, NGOs, and education, positively impacting people’s lives and supporting the Nigerian economy.
