Nigeria needs more policy measures to achieve localised healthcare manufacturing targets – Ogangwu

Nigeria relies heavily on imports of pharmaceuticals and medical equipment. This situation has made healthcare more expensive for both providers and patients, thereby reducing access to healthcare services for Nigerians. Mary Ogangwu, chief operating officer of Codix Pharma Limited, in this interview with JOHN SALAU, said that only the creation of workable policies and government-led initiatives can help the country achieve its target of 70 percent of local manufacturing of medicines and 30 percent of devices. She also talked about how Codix plans to deliver innovative healthcare solutions and products to not only serve the Nigerian market but also the African continent at large. Excerpts:

How will you assess the healthcare industry in Nigeria in 2024, and what are your expectations for 2025?

2024 was a challenging one for the industry due to the economic challenges in the country, the inflation, and the depreciation of the Naira, which have led to a substantial rise in the cost of imported pharmaceuticals and medical equipment in Nigeria. Since Nigeria relies heavily on imports, this has made healthcare more expensive for both providers and patients, thereby reducing access to healthcare services for Nigerians.

The economic challenges also extended to the disruption of the supply chain. Due to the low level of healthcare manufacturing in Nigeria, the need for forex became more important for the pharmaceutical industry last year. Many companies in the industry faced setbacks in bringing their goods into the country, leading to shortages of much-needed healthcare products. The gap left by pharmaceutical companies that left Nigeria in 2023 is still being significantly felt as patients struggle to afford and find necessary medications, and health inequalities increase day by day.

“In 2024, the Nigerian government actively pursued the expansion of domestic healthcare manufacturing, employing a comprehensive strategy that includes regulatory and policy changes and investment initiatives.”

However, despite the numerous challenges, the year also brought good news. In 2024, the Nigerian government actively pursued the expansion of domestic healthcare manufacturing, employing a comprehensive strategy that includes regulatory and policy changes and investment initiatives.

The year 2025 has started on a very big note, especially with the withdrawal of USAID funding to poor and developing countries by the U.S. government. This situation is a very challenging one given that the USAID is a significant donor and contributor to healthcare programs in Nigeria.

This withdrawal of aid is already having reverberating effects across the healthcare system in Nigeria and calls into question the dependence of the healthcare system on aid. Although aid can be a means of addressing immediate needs and challenges and supporting the efforts of the government, over-reliance on aid is detrimental to a country as it reduces local capacity and also crowds out investments in the relevant sector.

In addition, in 2025, we look forward to more policy measures and government-led initiatives aimed at achieving its target of 70 percent of local manufacturing of medicines and 30 percent of devices. In all, despite the challenging start, we expect the year 2025 to be a fundamentally transformative one for the industry.

The medical industry in Nigeria today has several healthcare solution companies. Tell us about Codix.

We are focused on the provision of quality, innovative, accessible, technology-enabled healthcare solutions. We are not just a pharmaceutical company; we are innovators. We pioneered the introduction of HbA1c testing in Nigeria, which transformed the management of diabetes in the country.

Today, we have risen to be at the forefront of cardiometabolic care in Nigeria through the supply of therapeutics and point-of-care devices for diabetes, hypertension, and heart diseases to hospitals and millions of patients who might otherwise go unnoticed.

We have over 70 NAFDAC-registered products in Nigeria and are a leading importer of rapid diagnostic test kits in Nigeria. In addition, our wellness products are designed to promote daily health and longevity, supporting both disease prevention in healthy individuals and improved quality of life for those with chronic conditions. Considering existing gaps in the Nigerian health space, we are committed to harnessing opportunities within our focus areas and to opening more frontiers that fill the gap.

Read also: Pharmaceuticals incur FX losses on naira depreciation

What has the operation of the company been like since its inception in Nigeria?

Codix Pharma commenced operations in 2008 from a modest office situated in Ijora, Lagos, with the initial focus on Glucodix tablets, following receipt of regulatory approvals. We strategically shifted operational focus to diabetes care, marked by the launch of blood glucose monitors and the pioneering introduction of HbA1c testing, thereby establishing a dominant market presence. A partnership with Standard Diagnostics and then SD Biosensor in 2019, a world leader in diagnostics, facilitated the company’s expansion into rapid diagnostic testing, including malaria and other RDTs.

From the initial single product offering in 2008, the company has experienced substantial growth, developed a portfolio of own-branded products, including cardiometabolic and wellness offerings, and extended its market reach to several African nations.

In a strategic move towards contributing to indigenous manufacturing, we initiated a backward integration and localisation strategy, resulting in the launch of Colexa Biosensor, a blood glucose manufacturing facility, the first of its kind in Sub-Saharan Africa. We are looking forward to the commissioning of our Rapid Diagnostic Test (RDT) manufacturing subsidiary before the conclusion of the first quarter of the current year, marking a first on the continent.

You plan to open a new factory in Nigeria. Tell us what informed your decision to do so. What does the future hold for Nigeria and the West Africa sub-region in general?

Despite being one of the leading importers of healthcare solutions in Nigeria, the leadership of the company has always been committed to the vision of the localisation of healthcare manufacturing in Nigeria.

A localised healthcare manufacturing industry will enable the development of a self-reliant healthcare industry and reduce forex needs and dependence on imports while generating economic benefits for the nation.

Reduction of dependence on the global supply chain provides the opportunity to produce customised solutions for Nigerian and larger African healthcare needs. Codix Pharma began its phased localisation and backward integration project with the establishment of its new subsidiary, the Colexa Biosensor factory, the first of its kind in sub-Saharan Africa for blood glucose meters and strips, which signifies a great accomplishment because, for the first time in sub-Saharan Africa, blood glucose meters can be assembled, and the strips can be manufactured in the region, i.e., a product manufactured in Africa for Africa.

The effect of a healthcare system being reliant on importation was brought to bear during the COVID-19 pandemic, when accessing healthcare supplies was extremely difficult for African countries. Owing to such challenges faced by African countries, the WHO established the World Local Production Forum to shape strategies and foster partnerships to catalyse local production and technology transfer, allowing participating countries to develop capabilities and to ensure the preparedness, responsiveness, and capability of the continent to tackle any future emergency healthcare challenges.

This project initiated by the WHO heralds a new era of innovation and self-sufficiency in the African healthcare landscape. As such, Codix Pharma, as a player in the rapid diagnostic test kits sector in Nigeria, set up this factory to leverage this initiative to advance the cause of African healthcare self-reliance.

From your experience in the industry, how has Codix’s solution been an enabler in helping the health and medical field achieve their purpose?

Codix has been a major contributor to improved healthcare outcomes in the industry. Our range of healthcare solutions has been validated by the regulatory bodies and renowned hospitals and has been attested to by the users. Our various points of care devices have simplified diagnosis and treatment in Nigeria.

Beyond simply providing healthcare solutions, Codix has actively participated in advancing Nigeria’s healthcare system. This includes collaborative development of guidelines, strategic input, and knowledge sharing.

Codix has always kept abreast of healthcare innovations to better serve the needs of Nigerians and has introduced various innovative products to the Nigerian market. The Nigerian healthcare industry is competitive and dynamic, where new technologies and innovations are continuously being introduced. Codix is continually involved in exploring and introducing cutting-edge healthcare solutions that address the specific needs of the Nigerian health industry. We believe that competition is there to keep us on our toes, pushing us to be better.

The company is a major player in the healthcare solution space. What plan does your company have for the Nigerian health sector in terms of partnership?

Codix has always been an advocate for collaboration across the healthcare industry in Nigeria through its membership in various bodies and the spearheading of various initiatives in the industry. The company recognises the importance of partnerships to drive meaningful change and for the industry’s progress. We are continuously partnering with and seeking partnerships with government agencies, development partners, private sector players, and financial institutions focused on the localisation of healthcare products.

What have been your greatest challenges as an operator in the nation’s healthcare sector?

Nigeria is a very interesting place to do business with the opportunities and challenges that abound. One of the challenges faced in the healthcare business in Nigeria is access to low-interest finance. In a country where capital is scarce, funding to invest in healthcare projects is extremely tough to obtain due to exorbitant interest rates on credit facilities, which have increased due to the prevailing economic situation. This puts Nigerian healthcare entrepreneurs at a disadvantage when compared to peers in the Western world, where lending facilities have lower interest rates.

Poor infrastructure also increases operating and manufacturing costs for local manufacturers, thereby affecting their competitiveness. The business environment, as we all know, has become more challenging as a result of the prevailing economic situation in Nigeria, leading to higher costs of doing business for healthcare businesses in the country and economic uncertainty.

Insufficient government healthcare expenditure severely limits the demand for locally manufactured products, hindering market growth and investment. The Nigerian healthcare budget is still short of the 15 percent standard as agreed by the Abuja declaration. This has led to a weak healthcare system incapable of meeting the needs of the citizenry. It is hoped that the government would, going forward, make healthcare funding a priority to build a self-reliant and resilient healthcare system capable of addressing current and future healthcare challenges.

Nevertheless, we are excited for the future of healthcare in Nigeria with the government’s current efforts on healthcare localisation.

Where do you see your operation in Nigeria in the next 5 years?

Our goal is to be the leading African health tech company in 2030, and our strategic initiatives and operations are geared towards this. We are committed to the ongoing backward integration of our operations through ongoing and planned projects as well as industry collaborations that facilitate the localisation of healthcare solutions within Nigeria. Our goal is for our products to serve not only the Nigerian market but also the African continent at large.