Forex shortage impacts drug, vaccine supplies – GlaxoSmithKline
Joseph Ekeng
In a recent development, GlaxoSmithKline’s Nigerian division, the second-largest drug manufacturer in the West African country, is facing significant challenges in maintaining the supply of pharmaceutical and vaccine products due to a scarcity of dollars required for importing essential ingredients.
In an emailed statement, GlaxoSmithKline Consumer Nigeria expressed its efforts to minimize the duration of the market’s product unavailability. The company stated, “We are doing all we can to limit the period of time the market will be out-of-stock on our products.”
The scarcity of foreign currency is a result of the Central Bank of Nigeria’s measures to regulate the value of the national currency, the naira, and safeguard foreign exchange reserves. To achieve this, the bank implemented a multiple exchange-rate system, wherein it provides limited amounts of dollars at controlled prices to eligible companies. However, most businesses unable to access the official rate have turned to the more expensive parallel market.
This situation has created a significant disparity in exchange rates, with a staggering 61% difference between the rates offered by the central bank and the black market. While the official rate stood at 464.94 naira per dollar as of 1:36 p.m. in Lagos on Friday, June 2nd, the street rate soared to approximately 750 naira per dollar.
Addressing the issue, President Bola Tinubu emphasized his commitment to promoting a uniform exchange rate system, which would enhance the availability of dollars to businesses. In his inauguration speech, he stated his intention to encourage policymakers to adopt this approach.
Meanwhile, GlaxoSmithKline, known for its widely used Augmentin antibiotic and Ambirix hepatitis vaccine in Nigeria, is actively engaging with all stakeholders to seek a viable solution that ensures a consistent supply of medicines and vaccines. The company expressed regret over the disruption caused to patients and healthcare providers, emphasizing its dedication to finding a resolution.
The forex shortage’s impact on drug and vaccine supplies in Nigeria has raised concerns about the potential consequences for public health. Stakeholders and policymakers are now under pressure to address the issue promptly to prevent further disruption and ensure the availability of essential healthcare products across the country.
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