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Drug firms task govt on essential medicines

By Paul Adunwoke
09 July 2015   |   12:12 am
PHARMACEUTICAL Manufacturers Group of Manufacturers Association of Nigeria (PMG-MAN) has lamented the implications of the recent Nigeria government policies on pharmaceutical industry, national security and access to essential medicines. They recommended that an import adjustment of taxation of 20 percent on imported finished pharmaceutical products of harmonised system code 3003 and 3004 should be imposed…
Managing Director (MD)/Chief Executive Officer (CEO) of CHI Pharmaceuticals. Mr. Steve Onyia (left); MD/CEO of Fidson Healthcare PLC, Dr. Fidelis Ayebae; MD/CEO Sam Pharmaceuticals Limited, Ashwin Dayalami; Former MD Neimeth Pharmaceutical PLC, Mr. Sam Ohuabunwa; and Chairman, Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), Mr. Okey Akpa, at a press conference in Lagos

Managing Director (MD)/Chief Executive Officer (CEO) of CHI Pharmaceuticals. Mr. Steve Onyia (left); MD/CEO of Fidson Healthcare PLC, Dr. Fidelis Ayebae; MD/CEO Sam Pharmaceuticals Limited, Ashwin Dayalami; Former MD Neimeth Pharmaceutical PLC, Mr. Sam Ohuabunwa; and Chairman, Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG-MAN), Mr. Okey Akpa, at a press conference in Lagos

PHARMACEUTICAL Manufacturers Group of Manufacturers Association of Nigeria (PMG-MAN) has lamented the implications of the recent Nigeria government policies on pharmaceutical industry, national security and access to essential medicines.

They recommended that an import adjustment of taxation of 20 percent on imported finished pharmaceutical products of harmonised system code 3003 and 3004 should be imposed immediately as applied to other sectors where Nigeria has capacity as allowed by the Common External Tariff.

However, they added that under the National list within the Common External Tariff, input into pharmaceutical manufacturing raw materials, excipients and packaging should be allowed to be imported, at no cost, by bona fide pharmaceutical manufacturers.

Speaking at the PMG-MAN press conference in Ikeja, Lagos, last week, the Chairman of the Association, Mr. Okey Akpa, said: “It is a fact that essential medicines are critical to healthcare delivery in any country, and Nigeria is no exception. With a population above 160 million people growing at an average rate of 3 per cent, a robust and efficient healthcare delivery system is essential for Nigeria. A vibrant local pharmaceutical manufacturing industry will not only guarantee the nation’s march towards self sufficiency in essential medicine needs but will also provide gainful employment and boost the economy.

“Despite having over 150 pharmaceutical factories in Nigeria out of which four have complied with World Health Organisation (WHO) current Good Manufacturing practice (CGMP), the industry continues to struggle. The situation has now been worsened by recent government policies; specifically the Economic Community of West African States (ECOWAS) Common External Tariff (CET), and the new drug distribution guideline, both of which threatened to annihilate the industry leading to job, dependence on imported medicines and reversal of gain made in the fight against fake drugs.”

He continued: “The recent adopted (June 2015) CET is a potent threat to this industry that is gasping for breath. The CET was adopted at the Head of State Summit in October 2013 in Dakar, Senegal. This policy places zero tariff on finished imported medicine while essential raw and packaging materials required by industry for local medicine production attracts five to 20 per cent.

“This policy if implemented reverses the gains made towards the nation’s self-sufficiency in essential medicines and opens all doors for total importation of finished medicines. It is regrettable that the damaging consequences of the policy on the local pharmaceutical manufacturing sector were not considered despite our desperate attempts to draw attention to this.”

Akpa noted the policy undoubtedly spells doom for the local industry, as imported medicines will become far cheaper than locally produced ones. The situation is inimical to the survival of the local pharmaceutical manufacturing sector, and there is a need for an urgent review.

He said: “The laudable achievement of having four WHO certified manufacturing facilities was earned through the initiative of the National Agency for Food and Drugs Administration and Control (NAFDAC), and individual investment efforts of the companies involved. The industry has invested an estimated N100 million in various facility upgrades over the last five years. These investments have not brought about the desired benefits largely due to neglect by successive government and lack of patronage there is need to keep Nigeria medical factories running and not factories overseas.”

Akpa further more narrated that Pharmaceutical industry currently employed, direct and indirectly, over one million persons in the country. A significant number of these stand the risk of losing their jobs if the local manufacturing sector is unable to reverse its current fiscal situation following the adaption of the CET.

He said: “The lack of demand for locally manufactured medicines as a result of cheap imports will lead to idle capacities and negatively impact previous investments in the sector worth over N300 billion. A weak local manufacturing sector will inevitably lead to an influx of cheap imported medicines of doubtful quality. Non-existence of local manufacturing industry would lead to a dearth of skilled manpower and ultimately a massive brain drain from the industry.

“Developed countries like Germany and the United States strengthened their economies through industry. Any country that pays little or no attention to manufacturing ends up with weak economies.

“A complete review of this policy is essential for the continued survival and growth of the local pharmaceutical manufacturing industry. A reversal is necessary Nations essential drug needs. Therefore, there is need to protect the local pharmaceutical manufacturing and encourage industrialisation as self-sufficiency in essential and medicines have national security implications. Nigeria’s responsibility to minimise the effect of diseases on the economic, social and political stability of the country cannot be abdicated to imported medicine.”

Former Managing Director, Neimeth Pharmaceutical Plc., Mr. Sam Ohuabunwa, said: “The new National Drug Distribution Guidelines is an important aspect of the pharmaceutical industry’s value chains. The importance of an efficient distribution system in the sector cannot be over emphasised as it ensure that quality medicines readily get to the consumer at reasonable prices. The current drug distribution system in Nigeria is chaotic and continues to expose consumers to the dangers of Substandard, Spurious, Falsified and Falsely Labeled Counterfeit (SSFFC), medical products.

“We must applaud the federal government and NAFDAC for their efforts to sanitise the local drugs distribution system. In a bid to find a lasting solution to the medicine distribution challenge, the government through the Federal Ministry of Health introduced the National Drug Distribution Guideline (NDDG). However, the NDDG in its current form has essentially handed over the pharmaceutical industry to cartels and syndicates, which will increase the cost of essential medicines in country by inefficient extention of the distribution chain.

He continued: “The PMGMAN, in a position paper communicated to key stakeholders in the industry, was explicit in its support of the Federal government in her effort to sanitise medicine distribution in Nigeria. We subsequently put forward a proposal based on a realistic, sustainable and evidence based approach to solving the current drug distribution challenge in Nigeria. This proposal was accepted by the majority of the stakeholders, including the Pharmaceutical Society of Nigeria (PSN), as a template to form the foundation for a revised model.”

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