Fake drugs holding back Nigerian pharma market

Nigeria ranks 15 out 17 regional pharmaceutical markets in the Middle East and Africa, says a new report, with its lowly position largely a result of a high level of counterfeiting, poor healthcare funding and ‘endemic’ corruption.

And that position is unlikely to change, despite a near 23 per cent market growth between now and 2013, says publisher Business Monitor International.

Counterfeits make up around 40 per cent of the overall Nigerian drugs market, which is estimated to grow from $633m at present to $778m in the next five years, helped by a rapid increase in Nigeria’s population.

The National Agency for Food and Drug Administration and Control (NAFDAC) has begun to crack down on the illicit trade after nationwide concerns over the safety of counterfeit drugs, and has been systematically closing down outlets – such as patent medicine stories – that are trading in illegal medicines.

However, BMI notes that this is campaign is targeted at patient safety, rather than enforcing company’s intellectual property rights, and this “will continue to hinder multinational involvement in the sector.”

There are signs that the country can attract the interest of pharmaceutical multinationals, however. GlaxoSmithKline recently established a clinical trials centre in the country.

More information on the report, entitled The Nigeria Pharmaceuticals and Healthcare Report, is available here.