Most of the pharmaceutical companies in Nigeria import high percentage of processed raw materials, as well as the heavy machines and equipment used in pharmaceutical manufacturing. Nigeria has a large pharmaceutical market due to the high population and cheap labor.
The pharma industry in Nigeria is expected to grow at a compound annual growth rate (CAGR) of 9.1% reaching $5.3 Billion by the year 2024.
Due to low level of local production of finished products, Nigeria imports most of the pharmaceutical dosage forms from India, China, Brazil, US, Taiwan, and Europe.
The pharma industry also faces other challenges such as unfair government policies, competition from imported products and multinational companies on local products, costly raw materials, financial constraints, poor production of pharmaceutical-grade raw materials in bulk, lack of trained workforce, and circulation of fake, illegal, and substandard products.
Pharmaceutical Market in Nigeria
In Africa, South Africa remains the largest pharmaceutical market with market size of $3.9 billion, followed by Egypt (USD 2.6 Billion), Algeria (USD 1.9 Billion), Morocco (USD 1.6 Billion), and Nigeria (USD 1.5 Billion).
There are about 200 pharmaceutical companies in Nigeria (130 pharmaceutical manufacturers), and are able to meet only 25% of the country’s drug needs. The local pharmaceutical manufacturers focus on production of generics medicines, with little or no Research & Development due to costs. The market is also highly fragmented, with the top 10 local manufacturers controlling less than 25% of the market revenue.
The pharmaceutical market has three major segments – OTC sector (43.1%), generic sector (38.9%), and patented (12%).
PMG-MAN, an arm of Manufacturers Association of Nigeria (MAN) is an organization of some of the major pharmaceutical companies in Nigeria.
Top Pharmaceutical Companies in Nigeria
Top pharmaceutical companies based on revenue size include Mecure Industries Plc, Fidson Healthcare Plc, May & Baker Nigeria Plc, Neimeth International Pharmaceuticals Plc, Morison Industries Plc, and Pharma-Deko Plc.
Emzor Pharmaceutical Industries Ltd, with its headquarters in Lagos
May & Baker Nigeria Plc, based in Oba Akran, Lagos
Fidson Healthcare Plc, based in Obanikoro, Lagos
Neimeth International Pharmaceuticals Plc, based in Oregun, Lagos
Pharma-Deko Plc, with its headquarters in Agbara, Ogun State
Mecure Industries Plc, based in Lagos
Morison Industries Plc, based in Ikeja, Lagos.
Drugfield Pharmaceuticals Ltd, headquartered in Sango Ota, Ogun State
Juhel, based in Emene, Enugu State.
Dana Drugs, located in Itire, Lagos
Daily Need Industries Limited, based in Oshodi Scheme industrial Estate, Lagos
