The Federal Government is targeting at least 70% local production of essential healthcare products by 2030. The goal is to strengthen medicine security and reduce dependence on imports. The Minister of State for Health and Social Welfare, Iziaq Salako, disclosed this on Monday in Lagos. He spoke at the 8th Nigeria Pharma Manufacturers Expo. The event was organised by the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN).
Nigeria imports most of its medicines. The COVID-19 pandemic exposed the risk. Global supply chains broke down. Nigeria could not access vaccines and diagnostics. The experience pushed African countries to develop domestic capacity. In 2023, the government launched the Presidential Initiative to Unlock the Healthcare Value Chain (PVAC). In 2024, it signed an executive order granting tariff relief to pharmaceutical manufacturers. The current target builds on those measures.
Salako said PVAC has secured about $2 billion in financing commitments at single-digit interest rates. About 50 Nigerian health firms are in advanced discussions for funding. He said 87 local manufacturers are benefiting from a presidential executive order. The order grants zero tariffs on pharmaceutical machinery, active pharmaceutical ingredients (APIs) and excipients across almost 1,000 Harmonised System codes.
“Our conversation can no longer be limited to whether we can access medicines when global supply chains are functioning,” he said. He described medicine security as an issue of national resilience and sovereignty. He said Nigeria must develop capacity across the value chain, not just final-product assembly.
Ongoing efforts include expanding local production of APIs, vaccines, biologics and diagnostics. He cited the operationalisation of the National Institute for Pharmaceutical Research and Development (NIPRD) API Capacity Building and Concept Production Centre. He also cited efforts to localise production of HIV, hepatitis and syphilis diagnostic products.
The establishment of Medipool, Nigeria’s national Group Purchasing Organisation for essential medicines, will create predictable demand for locally manufactured products. It will aggregate procurement and negotiate bulk purchases. Salako urged manufacturers to explore regional markets under the African Continental Free Trade Area (AfCFTA).
Winners: Local pharmaceutical manufacturers, who gain tariff relief and financing. Patients, if medicine supply improves. The government, if medicine security strengthens. Workers in the pharmaceutical sector, who gain jobs. Losers: Importers of medicines, who lose market share. Foreign pharmaceutical firms, which face competition. The government, if the target is missed. Consumers, if local production does not match quality expectations.
Bottom Line: Seventy per cent local production by 2030 is ambitious. The financing and tariff relief are real. Quality and affordability will determine success.