Lack of infrastructure stifles new drug distribution implementation

Lack of infrastructure, notably warehouses, is crippling the implementation of the New Drug Distribution Guideline (NDDG), Paul Orhii, director-general, National Agency for Food and Drug Administration and Control (NAFDAC) has said.

Orhii disclosed this on Monday at the opening ceremony of the three-day Pharma Expo in Lagos.

According to the NAFDAC boss, though the Ministry of Health has approved the NDDG, stakeholders who are supposed to provide the warehouses have not yet done so.

The NDDG was introduced by the Health Ministry to instil discipline in the chaotic drug distribution, according to officials. But drug makers and importers under the aegis of Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) and the Association of Nigerian Representatives of Overseas Pharmaceutical Companies (NIROHARM), respectively, disagree, suggesting alternative models of ensuring that they are not stifled in the new drug distribution system.

Speaking earlier, Okey Akpa, chairman, PMG-MAN, said the expo was an opportunity for stakeholders in the health sector to exchange information, products, services and ideas towards achieving health-related goals and other developmental initiatives in Nigeria and West African region.

Akpa said pharmaceutical companies had achieved great milestones in recent times, as four companies had achieved the World Health Organisation certification, adding that the four firms, alongside others seeking prequalification, had invested over $50 million in various levels of upgrade.

“A major issue with the implementation of the Common External Tariff on medicines implies that duty tariff on imported pharmaceutical raw materials is 5 percent, which is higher than duty on imported pharmaceutical products at zero percent,” Akpa said, while speaking on the theme entitled, ‘The Nigerian Pharmaceutical Manufacturing Industry and International Competitiveness,’ in response to the new CET, which places them on a disadvantage.

He recommended zero duty on raw materials and 20 percent Import Adjustment Tax on imported finished drugs.

Responding, Kalilou Traore, ECOWAS commissioner for industry and private sector promotion, assured Nigeria pharmaceuticals that their CET reservations would be looked into.

Traore said ECOWAS would continue to canvass for improved government patronage of local pharmaceutical products in Nigeria, support local players to obtain the WHO pre-qualifications and certifications while providing advocacy to facilitate funding.

He said ECOWAS would organise the first industrial exhibition, which would bring all regional players together, next year.

Joseph Babatunde, executive director, large enterprises, Bank of Industry, who represented Rasheed Olaoluwa, CEO, said the bank was committed to supporting the pharmaceutical industry, disclosing that three out of the four drug firms that obtained the WHO pre-qualification were supported by the development bank.

He advised other drug firms to take advantage of the funding opportunities in BoI, stressing that the bank was irretrievably committed to promoting Nigeria’s industrial sector.