Pharmaceutical Giants Exit Nigeria as Drug Costs Skyrocket, SBM Survey Reveals

A recent survey by SBM Intelligence sheds light on the escalating challenges faced by Nigerians as the economic strain under President Bola Tinubu continues to drive unprecedented increases in the prices of essential medications. Titled ‘Paying The Price on Health,’ the survey compared pharmaceutical product prices from 2019 to November 20, 2023, revealing alarming spikes.

Against a backdrop of adverse economic conditions, GlaxoSmithKline, a British multinational pharmaceutical giant, announced in August 2023 its decision to cease operations in Nigeria after 51 years. In a similar vein, Sanofi, a global pharmaceutical organization producing polio vaccines, initiated the winding down of its Nigerian business starting last month.

The survey exposed significant price hikes across various drug categories. In the antibiotics sector, Beecham Ampiclox CAPS 500mg skyrocketed from N750 in 2019 to N9,000, while Augmentin 625mg surged from N4,000 to N26,000. Essential analgesics like paracetamol 500mg experienced staggering changes, leaping from N40 in 2019 to N150, and novalgin, previously N70, now costs N150 at pharmacies.

In the painkillers category, Brustan 400mg rose from N200 to N300, Cataflam 50mg surged from N700 to N1,300, and Athrotec climbed from N1,100 to N1,800, as reported in SBM’s forthcoming Tuesday release.

The survey also revealed soaring prices in common cold medicines, with Procold escalating from N70 in 2019 to N250. Notably, the prices of various antibiotics, common cold medicines, and antimalarials witnessed substantial increases, exacerbating the challenges faced by the Nigerian populace.

SBM pointed out that pharmaceutical manufacturers have adopted a third-party distribution model in Nigeria, resulting in inflated prices due to increased importation costs. The prices are now intricately linked to factors such as forex rates and the naira’s value against the dollar, making medicinal products either prohibitively expensive or scarce.

Explaining the relentless surge in drug prices, Boladele Silva, a pharmaceutical professor at the University of Lagos, highlighted the vulnerability of Nigeria’s pharmaceutical industry to foreign exchange volatility, given its reliance on imported active pharmaceutical ingredients.

Silva warned of the consequences, stating, “The rising cost of drugs in Nigeria is forcing patients to skip doses or forget treatment altogether.” SB Morgan cautioned that this crisis could lead to drug resistance, exacerbating chronic conditions and potentially increasing morbidity and mortality rates. Despite these concerning findings, a spokesman for the federal ministry of health did not respond to requests for comments on SBM’s report or the government’s overall strategy to address rising drug prices.