In a significant blow to Nigeria’s healthcare system, the nation’s pharmaceutical imports have witnessed a staggering 63% decline over the course of just two years. This trend is indicative of the growing struggle to maintain a consistent supply of crucial medications, exacerbated by the worsening shortage of foreign exchange within the country.

Fresh data unveiled by the International Trade Centre, a reputable multilateral agency, paints a troubling picture. The importation of pharmaceutical products into Nigeria has undergone a distressing decline for the second consecutive year, with figures plummeting to $1.05 billion in 2022. This represents a sharp 23.4% drop from the preceding year’s $1.37 billion. Going even further back, the figures have declined by a staggering 63.0% from the $2.84 billion reported in 2020. Correspondingly, pharmaceutical exports also suffered a significant hit, plummeting by 65.0% to $779 million in the past year.

“The industry is facing a tremendous challenge in terms of accessing foreign exchange as over the years, access to it has reduced imports, especially for raw materials,” commented Sam Ohuabunwa, the former president of the Pharmaceutical Society of Nigeria. His words reflect the alarming fact that the decline in pharmaceutical imports cannot be attributed to a substantial increase in local production.

“The devaluation of the naira led to a depression in the demand for drugs. And with high inflation and devaluation, it becomes difficult for businesses in the pharmaceutical industry to recover the price and when they try to recover it, their products become unaffordable,” explained Ohuabunwa, shedding light on the intricate interplay between economic factors and healthcare affordability.

Gabriel Idahosa, deputy president of the Lagos Chamber of Commerce and Industry (LCCI), emphasized that the entirety of the pharmaceutical industry in Nigeria relies on imports, encompassing everything from raw materials to packaging. The consequences of this reality are dire, as he underscored the concerning impact on healthcare accessibility for common illnesses such as malaria and cough. “The healthcare security of Nigerians is at jeopardy because the drugs for treating common illnesses such as malaria and cough are getting expensive by the day,” Idahosa warned.

Nigeria, being Africa’s most populous nation, heavily leans on imports for drugs, active pharmaceutical ingredients, and manufacturing equipment from countries including China, India, Malaysia, and the Netherlands. Pharma West Africa, a prominent pharmaceutical exhibition on the continent, disclosed that a staggering 70% of medicines consumed in Nigeria are imported. These medications constitute a substantial portion of the country’s overall healthcare expenditure, which stands at $10 billion.

The situation is further exacerbated by limited access to health insurance, with “out-of-pocket expenditure” reaching an alarming 62% of the total healthcare expenses. Economic woes, including two recessions within the last seven years, have severely weakened Nigeria’s foreign inflows, ultimately culminating in a liquidity crisis within the nation’s FX market.

As Nigeria grapples with this trajectory, urgent measures are required to address the root causes of these challenges and ensure the availability and affordability of crucial medications for its citizens.