By Chioma Amajorr
The management of Nigerian Export-Import-NEXIM Bank has reassured of its determination to deepen the local formulation and production of medicines in the country as a way of weaning the national economy off undue dependence on importation of finished pharmaceutical products.
Clear from a recent meeting held at the headquarters of NEXIM in Abuja between the leadership of the bank and the management of Fidson Healthcare Plc., one of the leading players in the pharmaceutical industry in Nigeria, now ready with the support of the bank to spread its wings deep into Africa.
A Push for Self-Sufficiency
During the meeting, the Managing Director of NEXIM, Mr. Abba Bello, represented by the Executive Director of Business Development, Stella Okotete, emphasized the need to increase local production to satisfy the growing demands of Nigeria’s healthcare sector. “We will support local companies like Fidson in their bid to sustain their regional and local production capacity and distribution,” Bello said.
This is very timely, as the country relies heavily on imported drugs. In the third quarter of 2023 alone, medicines valued at N81.81 billion-that is, about $105 million-were imported into the country, thus revealing the wide gap in local production. Bedeviled with inadequate infrastructure, high production costs, and adulteration with fake drugs, the sector has always fallen short of meeting the healthcare needs of the nation for years.
He explained that the partnership between NEXIM and Fidson is part of a larger strategy for the development of local pharmaceutical companies that can eventually manufacture and export high value drugs to both Nigeria and other African nations. This, according to him can be achieved with access to finance, technical assistance, and strategic partnership opportunities from the bank.
Strategic Partnership
Fisdon Healthcare Plc. welcomed this partnership with NEXIM Bank as one that would drive its growth. The Deputy Managing Director, Fidson, Mr Abiola Adebayo, therefore assured of the bank’s commitment to such partnership, while expressing optimism that such a strategic partnership would go a long way in positioning Fidson as one of the leading companies within the African pharmaceutical space.
“We are ready to take the opportunities created by NEXIM Bank to upscale our operations and deliver quality, affordable health solutions not just in Nigeria but across Africa,” Adebayo said. He added that the company is assiduously working on expanding its production capacity and tapping into the regional markets where demands for locally produced medications are on a rise.
Understanding the Challenges of Expansion
Though Fidson seems bullish about the future, there are some regulatory challenges facing it in its quest to expand across African markets. The Finance Director Imokha Ayebae expressed unease over the challenge of getting the product’s registration across different countries in Africa, saying regional trade policies should be functional to make cross-border operations easier.
He also echoed the need for money to scale up manufacturing and distribution capabilities. “We need solid financing to enhance the infrastructure and reduce the cost of production, hence competing effectively across Africa,” said Ayebae.
This was attested to by the Divisional Manager of Institutional Business at Fidson, Mr. Jerome Dagun, who lauded what he called “the proactive approach of NEXIM Bank”. According to him, with such support offered by the bank, Fidson was aptly positioned to surmount the challenges and maximize opportunities that the African pharmaceutical market presents.
Record of NEXIM Bank
NEXIM Bank’s revived interest in the pharmaceutical industry is in line with its current drive to support key sectors within the Nigerian economy. The bank has, over the last seven years, recorded milestones such as an increase in operating profit by a factor and reduction of non-performing loans, indicating a potential to execute landmark projects.
The wider mandate of NEXIM has been to pursue the development of non-oil exports and provide finance to industries with transformative potential for the economic scene of Nigeria. In as much as health is a prime sector, this bank’s partnership with Fidson represents a leap toward making Nigeria self-sufficient in medicine production and therefore boosting the health of her citizens.
Stepping Toward Good Health
This, therefore, forms the bedrock of this partnership between NEXIM Bank and Fidson Healthcare Plc. for the growing consensus among the key drivers of Nigeria’s economy-that there cannot be sustainable growth without local production. This reduces Nigeria’s reliance on foreign imports and further invests in local industries that will position it to become a major player in Africa’s pharmaceutical space.
As the Nigerian government is still beating the drum for economic diversification, NEXIM’s support of companies like Fidson shows a positive indication of Nigeria’s resolve to take ownership of her health infrastructure and ensure access at all levels with affordable high-quality medicines.
