The Pharmaceutical Industry in Nigeria: Drug Accessibility, Affordability and Competitiveness in the Economy.

olayisade, Adeyemi (2025): The Pharmaceutical Industry in Nigeria: Drug Accessibility, Affordability and Competitiveness in the Economy.

Abstract

The study focuses on reviewing factors that influence accessibility, affordability, efficiency in Nigeria’s pharmaceutical industry and its impact on healthcare delivery. Despite the Nigeria’s increasing population coupled with a high disease burden, it imports most of its drugs from India and China since its own pharmaceutical sector is not self-sufficient. The study noted certain difficulties such as poor infrastructure, inflation, exchange rate volatility, poverty and weak regulatory structure in the health sector made it tough for people to get access and afford basic medicines. The study deployed a semi-log regression to see how accessibility and affordability of medicines interact with the capacity of pharmaceutical sector in the Nigerian economy. Findings from the study revealed significant interrelatedness between level of access to essential medicines and the pharmaceutical industry contribution to GDP; other variables, such as costs of Malaria treatments, minimum wage, and inflation, showed weak or no statistical impact on the response variable. In conclusion, the study suggests that the federal government should discontinue the NHIS program to allow the private sector takeover this programme, this can free up resource and strengthen local pharmaceutical production, it also recommends applying regulatory measures to ensure medications are accessible and affordable for better health outcomes and a stronger economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: National Health Insurance Scheme (NHIS), Accessibility, Affordability, Competitiveness.
• Subjects: I - Health, Education, and Welfare > I1 - Health > I11 - Analysis of Health Care Markets

References

Adebisi, A., Umah, J., Olaoye, O., Alaran, A. and Sina-Odunsi, A., 2020. Assessment of health budgetary allocation and expenditure toward achieving universal health coverage in Nigeria. International Journal of Health and Life Sciences, 6(2), p.e102552.

Akande-Sholabi, W. and Adebisi, A., 2020. The impact of COVID-19 pandemic on medicine security in Africa: Nigeria as a case study. Pan African Medical Journal, 35(2), p.73.

Alenoghena, I., Aigbiremolen, A.O., Abejegah, C. and Eboreime, E., 2014. Primary health care in Nigeria: Strategies and constraints in implementation. International Journal of Community Research. Available at: https://www.ajol.info/index.php/ijcr/article/view/107665 [Accessed 6 Jul. 2025].

Federal Ministry of Health (FMoH), 2020. National Drug Policy Review. Abuja: FMoH.

Federal Ministry of Health, 2021. National Drug Policy. Abuja: Federal Ministry of Health.

National Agency for Food and Drug Administration and Control (NAFDAC), 2023. Annual report. Abuja: NAFDAC.

National Agency for Food and Drug Administration and Control (NAFDAC), 2023. Annual report. Abuja: NAFDAC.

Ndomondo-Sigonda, M., Miot, J., Naidoo, S., Dodoo, A. and Kaale, E., 2017. Medicines regulation in Africa: Current state and opportunities. Pharmaceutical Medicine, 31(6), pp.383–397.

Oridanigo, E.M., Salgedo, W.B. and Kebene, F.G., 2021. Affordability of essential medicines and associated factors in public health facilities of Jimma Zone, Southwest Ethiopia. Advances in Pharmacological and Pharmaceutical Sciences. https://doi.org/10.1155/2021/8849376

Pezzola, A. and Sweet, C., 2016. Global pharmaceutical regulation: The challenge of integration for developing states. BMC Health Services Research, 12(1), p.85.

Pharma-West Africa, 2025. The Nigerian pharmaceutical market is growing at over 9% annually. [online] Available at: https://www.pharma-westafrica.com/home [Accessed 6 Jul. 2025].

Uzor, K., Olarewaju, M., Asishana, T., Effiong, A. and Amaechi, A., 2024. The impact of inflation on medicine prices in Nigeria: A comparative analysis of public and private pharmacies. Pan African Medical Journal, 49(56).

World Health Organization (WHO), 2019. Nigeria Country Cooperation Strategy. Geneva: WHO.

World Health Organization (WHO), 2022. Access to Medicines and Health Products Report. Geneva: WHO.

Worldometers, 2025. Nigeria population (LIVE). [online] Available at: https://www.worldometers.info/world-population/nigeria-population/ [Accessed 6 Jul. 2025].