High imports, port congestion, others clog local pharmaceutical production —Experts

…demands harmonised taxation

Experts at the Nigerian Economic Summit Group (NESG) have called on the federal government to proactively address the hurdles clogging Nigeria’s pharmaceutical efforts in producing quality and affordable medicines for Nigerians.

Raphael Ajayi, general manager of supply chain at Fidson Healthcare Plc, speaking at a panel session on the ongoing #30 Nigeria Economic Summit, said about 99 percent of the pharmaceutical products used in Nigeria are imported which needs to be regulated to enable local manufacturers to thrive.

Besides, Ajayi said port congestion poses a big threat to the healthcare procurement supply chain.

“There’s a need to accelerate new products, within the ports there are congestions; it takes 10 or more days before imported products are scanned, before even talking of getting it to end-users,” he said.

He stressed that the government should ban products local manufacturers can produce in Nigeria.

“Products we can produce should be banned. Pharmaceutical products such as infusion should not be imported, because we have sufficient capacity to make them.

“Importing such pharmaceutical products will discourage local manufacturers,” Ajayi noted.

He emphasised the need for the government to address interest rate accrual to imported pharmaceutical machines so that investors can have enough funds to boost production.

“We depend largely on importation for machines, and without good funding, it can be very challenging,” he said.

Chukwudi Uche, country programme manager, Nigeria, CIPS Health Procurement, Africa Project, decried the lack of a strategic procurement guide in Nigeria.

“Procurement in Nigeria is like fire-fighting, from the manufacturer to the end user, there is no strategy,” he said.

Uche disclosed that Nigeria must have the right procurement professionals to address this disorder.

“Those with the right competence framework that has all it takes to drive procurement should be engaged,” he said.

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Also, Mary Ameh, director of warehousing and distribution at Chemonics International, Nigeria on the USAID GHSC-PSM Project cited inadequate infrastructure as a clog to achieving product integrity in Nigeria, which according to her has to do with insufficient warehousing, data quality, and inadequate data, among others.

“Inadequate infrastructure such as warehousing, especially at the lower level to maintain the integrity of products, besides, transportation challenges with poor road networks.

“Data quality and inadequacy also negatively affect the pharmaceutical products stock analysis,” she noted.

Ameh said that ensuring visibility and quality of data is key to demand planning which is critical to supply chain management.

She called on the government to drive policies that will encourage local investors to invest in the public healthcare sector.

“Government can give tax breaks or subsidies to enable investors to thrive, which will also be to the benefit of the end-users,” she noted.

Similarly, Kehinde Otto, head of supply chain at Royal Papworth Hospital Trust advocated for transparent funding in the sector.

Abiodun Oyenuga, project lead at Bill & Melinda Gates Foundation Strategetic Support to Targeted Nigerian States to Improve Supply Chain Performance pointed out the need to optimise technology in driving Nigeria’s healthcare procurement scheme.

“Technology is very crucial in driving healthcare procurements. Working with the government, we can ensure end-to-end visibility in the pharmaceutical products,” he said.

Oyenuga also buttressed the need for Public-Private-Partnership (PPP) in addressing procurement challenges in Nigeria, which he said offers incredible quality, especially, in the areas of logistics, allowing private organisations to share infrastructure and support.