The Federal Competition and Consumer Protection Commission has launched an inquiry into the escalating cost of essential medications for diabetes and hypertension, aiming to address pricing concerns and ensure affordability for Nigerians.
This was revealed on Wednesday during an investigative session on drug pricing variations, organized by the FCCPC.
The meeting brought together key industry stakeholders, including the National Agency for Food and Drug Administration and Control (NAFDAC), the Pharmaceutical Society of Nigeria (PSN), and the Association of Community Pharmacists of Nigeria (ACPN), among others.
The Nigerian pharmaceutical sector has been under severe strain due to foreign exchange reforms, rising production costs, and power supply challenges.
These reasons have resulted in the loss of large pharmaceutical corporations and significant changes in business strategies, disrupting medicine availability and affordability.
In accordance with its mandate, FCCPC Executive Vice Chairman, Tunji Bello, stated that the Commission is empowered by the FCCPC Act 2018 to promote fair business practices and defend consumer interests.
These factors have led to the exit of major pharmaceutical companies and significant shifts in business models, causing disruptions in drug availability and affordability.
In line with its mandate, FCCPC Executive Vice Chairman, Bello, emphasized that the Commission is empowered under the FCCPC Act 2018 to promote fair business practices and protect consumer interests.
He highlighted growing complaints from patients regarding the steep price variations of essential medications.
“The Commission has received consumer complaints regarding the variation and high costs of drugs in Nigerian markets. This inquiry aims to identify factors contributing to disparities in healthcare accessibility and affordability, particularly regarding drug pricing.
“We believe this is crucial to ensuring Nigerians have access to quality and affordable healthcare services,” Bello stated.
The exit of GlaxoSmithKline (GSK) from Nigeria in August 2023 marked a major shift in the industry. After 51 years of operations in the country, GSK cited operational difficulties as the reason for its departure.
GSK produced several critical medications, including, Diabetes: Avandia (rosiglitazone), Tanzeum (albiglutide), Byetta (exenatide), Hypertension: Coreg (carvedilol), Avapro (irbesartan), Tekturna/Rasilez (aliskiren) Asthma: Advair, Anoro Ellipta, Arnuity Ellipta, Infections: Augmentin (a widely used antibiotic) Similarly, French pharmaceutical company Sanofi exited Nigeria in November 2023, shifting to a third-party distribution model. This transition has significantly impacted patients, forcing them to pay over 100% more for the same drugs.
The President of the Pharmaceutical Society of Nigeria (PSN), Ibrahim Tanko, represented by FCT Chairman, Salamatu Orakwelu, raised concerns over the price variations of drugs covered under the National Health Insurance Authority Act (NHIAA).
Tanko emphasised the importance of government intervention to stabilise medicine prices and strengthen the pharmaceutical supply chain.
“The PSN stands ready to support initiatives that promote price stability, enhance drug accessibility, and strengthen the NHIAA for the benefit of all Nigerians,” he told journalists.
In a similar vein, National Chairman of the Association of Community Pharmacists of Nigeria (ACPN), Eze Ambrose Igwekamma, bemoaned the excessive dependence on imported medications, claiming that they make up 70% of the medications taken in Nigeria. Igwekamma claims that it is challenging for drug prices to drop because of the limited capability for local production.
“Whenever we talk about drugs, we should also emphasize healthcare services. We can’t just discuss the cost of drugs without considering overall healthcare delivery.
“It is when we address these broader issues that the safety of patients will be assured,” he added.
Speaking on the zero duty policy for pharmaceutical imports, the ACPN boss criticized its poor implementation, stating that it has yet to yield any tangible benefits.
“When you hear about zero import duty, the question is whether it has actually been implemented. For now, I don’t think it has been.
“Also, before the policy was announced, some companies had already imported products and paid full duties. Naturally, manufacturers will first factor in their costs before making any pricing adjustments,” Igwekamma explained.
The FCCPC’s inquiry is expected to shed light on the root causes of Nigeria’s high drug prices and propose solutions to ensure affordability.
However, with pharmaceutical companies exiting and supply chain challenges mounting, the government and industry stakeholders must act swiftly to protect Nigerian consumers from further price shocks.
