Categories: Economy

Drug Prices Set to Climb in Nigeria as Import Costs Surge Over N900bn Due to Naira Fall

Nigeria is bracing for a substantial surge in drug prices as import costs of pharmaceutical products are projected to surpass N900 billion following the persistent fall in the Nigerian Naira value.

The anticipated increase places added pressure on Nigerian citizens who already grappled with elevated drug prices throughout 2023.

Data from the International Trade Center reveals that Nigeria imported $1.05 billion worth of pharmaceutical products in 2022.

With the current exchange rate as of February 19, 2024 (N902.45/$), the cost is expected to soar to N950.81 billion, exacerbating the challenges faced by citizens.

Foreign drug companies transitioning to importation in 2024, exemplified by GlaxoSmithKline Consumer Nigeria Plc and Sanofi, contribute to the escalating costs.

Rising inflation and foreign exchange challenges further strain Nigeria’s pharmaceutical industry, heightening concerns about access to essential medicines.

Pharmaceutical experts emphasize the vulnerability of the industry to economic shocks due to its reliance on imported active pharmaceutical ingredients.

With these developments, the Nigerian government faces growing calls for intervention to mitigate the impact of surging drug prices on citizens’ access to essential healthcare.

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