MORGANABLE BUSINESS / GROWTH & POLICY
Nigeria’s pharmaceutical manufacturers are asking the Federal Government to extend the Presidential Executive Order supporting local drug production by another two years.
Akure —
Nigeria’s pharmaceutical manufacturers are asking the Federal Government to extend the Presidential Executive Order supporting local drug production by another two years. The request comes as manufacturers seek greater policy certainty, stronger investment and more capacity across the medicine supply chain.
The appeal was made at the 8th Nigeria Pharmaceutical Manufacturers Expo in Lagos. The two-day event brought together manufacturers, regulators, investors, government officials and development partners. According to reports published on October 2, the manufacturers want the current policy window extended beyond its expected March 2027 expiry.
The Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN) said continuity would help companies deepen investments and expand production. Its chairman, Oluwatosin Jolayemi, said manufacturers need a predictable environment to protect recent gains and build stronger production capacity.
The Executive Order, signed by President Bola Tinubu in 2024, introduced fiscal relief for selected pharmaceutical inputs, machinery and healthcare products. The measures include zero tariffs, excise duties and value-added tax on specified items. The policy was designed to reduce production costs and encourage more investment in Nigeria’s pharmaceutical industry.
However, manufacturers say policy support must continue if the sector is to make further progress. They are still dealing with high energy costs, supply-chain difficulties, port inefficiencies and limited access to long-term financing. In addition, companies face challenges in reaching wider markets and competing with imported medicines.
Jolayemi said the industry is undergoing significant transformation. PMG-MAN now represents more than 200 local pharmaceutical manufacturing companies. He argued that consistent government policies would allow these businesses to increase output, improve their facilities and make longer-term investment decisions.
Meanwhile, the Federal Government has indicated that it plans to extend the Executive Order. Tribune reported on October 2 that the government is considering a two-year extension to March 2029. The move forms part of efforts to strengthen domestic pharmaceutical manufacturing and reduce Nigeria’s dependence on imported medicines.
The government has also set a broader production target. Minister of State for Industry, Trade and Investment John Owan Enoh said Nigeria is targeting 70 percent domestic production of essential medicines. The government wants stronger local manufacturing to support medicine security and create a foundation for pharmaceutical exports across West Africa.
In addition, officials want manufacturers to take advantage of the African Continental Free Trade Area. A stronger domestic industry could give Nigerian pharmaceutical companies access to a larger regional market. However, companies will need competitive prices, reliable production, quality standards and efficient regulation to expand successfully.
The Federal Government is also considering other measures to support the sector. These include expanded tax exemptions, tariff waivers for raw materials and machinery, and incentives for local production of active pharmaceutical ingredients and excipients. Officials have also discussed dedicated pharmaceutical intervention funds.
The focus is not only on producing finished medicines. Government officials are calling for greater capacity across the entire pharmaceutical value chain. This includes research and development, sourcing raw materials, producing active ingredients, formulation, manufacturing, quality assurance, packaging and distribution.
The Minister of State for Health and Social Welfare, Iziaq Adekunle Salako, has linked stronger local production to medicine security. He said Nigeria needs to build the ability to produce critical healthcare products when global supply chains face disruptions. The government is therefore promoting investment in medicines, vaccines, biologics and diagnostics.
Earlier reports said 87 local manufacturers were benefiting from the Executive Order. The Federal Government has also said its healthcare value-chain initiative has secured about $2 billion in financing commitments at single-digit interest rates, with around 50 Nigerian health firms in advanced discussions for funding.
Regulators are also working to improve the sector. NAFDAC Director-General Mojisola Adeyeye disclosed that 37 local manufacturing facilities were undergoing retrofitting and construction upgrades to meet international standards.
She also called for stronger production of vaccines and other critical health commodities.
These developments come as Nigeria tries to reduce its long-standing dependence on imported medicines.
At the pharmaceutical expo, stakeholders said local production has begun to gain ground, but they stressed that the progress requires continued investment and coordinated policies.
For manufacturers, extending the Executive Order would therefore provide more time to expand factories, upgrade technology and strengthen supply chains.
It could also give investors greater certainty when considering projects that require significant capital and take several years to deliver results.
At the same time, the government faces the challenge of ensuring that incentives translate into sustainable production.
Lower tariffs and other relief measures can reduce costs, but manufacturers also need reliable electricity, efficient ports, access to finance and skilled workers. Strong regulatory systems will remain important as companies increase output.
The African Medicines Agency has also called for stronger regulatory cooperation across African countries.
Greater harmonisation could make it easier for Nigerian manufacturers to enter other African markets while maintaining quality and safety standards.
As discussions continue, the proposed extension has become an important issue for Nigeria’s pharmaceutical industry. Manufacturers want the government to maintain the current policy direction, while officials are working toward a larger domestic production target.
If the extension proceeds, the additional two years could give companies more room to expand capacity and prepare for regional competition.
Nevertheless, the wider success of the policy will depend on how effectively government, manufacturers, regulators and investors address the structural challenges facing the industry.
This could also support jobs, technology transfer, local skills, and wider industrial development.
For now, the push to extend the Executive Order reflects a broader effort to build a more self-reliant pharmaceutical sector.
Nigeria is seeking to move from heavy import dependence toward stronger domestic production, better medicine security and greater participation in the African pharmaceutical market.
