Drug manufacturers lament high production costs, import duty
The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMGMAN) has raised concerns over the exorbitant cost of import duty and operational expenses within the country’s pharmaceutical sector. This heightened cost, according to the group, significantly influences the soaring prices of medications, aggravating the burden on consumers.
As a subsidiary of the Manufacturers Association of Nigeria (MAN), PMGMAN represents all pharmaceutical and allied product manufacturers in Nigeria.
Oluwatosin Jolayemi, the Chairman of PMGMAN, expressed deep concern over the escalating cost of drugs in the nation, highlighting the adverse impact of the current customs duty regime and operational expenses on pharmaceutical production.
Jolayemi emphasized the challenges faced by manufacturers, citing the discretionary use of parallel market rates by customs authorities for duty calculation, alongside the escalating operational costs, particularly in power supply.
He underscored the erosion of operational funds due to the devaluation of the naira, further exacerbating the financial strain on pharmaceutical manufacturers.
The PMGMAN chair warned of potential repercussions, including product selection based on affordability and instability in pricing.
He urged the Federal Government to intervene by offering a substantial rebate on calculated duty rates and facilitating access to low-interest funding to bolster production capacity.
Furthermore, Jolayemi emphasized the critical importance of prioritizing pharmaceutical manufacturing as a national security imperative.
He stressed the need for government engagement with industry stakeholders to address challenges effectively, underscoring the necessity of political will to enhance medicine security in the country.
In conclusion, Jolayemi reiterated the imperative of viewing medicine production as a national priority, emphasizing the significance of concerted efforts to address the prevailing challenges and ensure sustainable access to essential medications for all Nigerians.
Without decisive action and genuine collaboration between the government and pharmaceutical stakeholders, the nation’s health security remains at risk, perpetuating a cycle of recurrent challenges in the pharmaceutical sector.
