Pharmacists in Nigeria are raising alarms about how escalating insecurity is exacerbating the challenges of drug distribution and driving up the cost of essential medications.
According to The PUNCH, they revealed that ongoing security issues have severely disrupted the drug supply chain and led to significant price hikes, making life-saving medicines unaffordable for many Nigerians.
The senior health professionals highlighted that the security crisis has limited patients’ access to necessary medications, intensifying the strain on the country’s healthcare system.
The increase in drug prices has become more pronounced, with no clear resolution in sight, heightening fears among Nigerians.
Vice-President of the Diabetes Association in Nigeria, Mr. Bernard Enyia, shared his personal experience, noting that in 2023, he managed his condition with a monthly budget of N70,000 for insulin and related expenses.
However, his monthly expenditure now exceeds N180,000 for the same medications. This shift underscores the urgent need to address security concerns to stabilize drug prices and ensure reliable access to medicines.
“A year ago, I managed my diabetes with a monthly budget of N70,000 for insulin and other medical expenses.
“Today, I spend over N180,000 monthly, a figure that more than doubled.
The surge in drug prices, exceeding 300 percent, is driven by several factors, including forex shortages, high production costs, increased raw material prices, subsidy removal, and elevated interest rates.
Additionally, the naira’s depreciation and the exit of foreign pharmaceutical companies have intensified this price spike.
The recent exit of British multinational GlaxoSmithKline from Nigeria has led to a sharp increase in the cost and scarcity of its drugs.
Since the Central Bank of Nigeria allowed the naira to float freely against other currencies in June 2023, the naira’s declining value has further strained manufacturers, leading to challenges in sourcing raw materials, increased production costs, and job cuts.
Former Chairman of the Association of Industrial Pharmacists of Nigeria and current Managing Director of Merit Pharmaceutical Company, Dr. Lolu Ojo, discussed how Nigeria’s insecurity is aggravating drug costs and distribution problems.
He noted that disruptions along key transport routes, especially in the North, East, and Middle Belt, are impeding pharmaceutical delivery.
Even previously safe routes in the Western region are now facing threats from Fulani herdsmen.
To navigate these challenges, Ojo has resorted to air transport for consignments, which, despite being safer, significantly raises costs.
He stressed that escalating insecurity is increasing operating expenses for pharmaceutical firms, shrinking profit margins, and endangering their viability.
Ojo called on all levels of government to address these security concerns to prevent further drug price hikes and distribution issues.
“These additional costs inevitably translate into higher prices for drugs and other products, particularly affecting the movement of goods between regions like the North and South East where insecurity is most severe,” he added.
Echoing these concerns, Ogheneochuko Omaruaye, Chairman of the Pharmaceutical Wholesalers and Distributors Association of Nigeria, confirmed that rising insecurity has severely impacted drug distribution. He explained that these disruptions not only drive up drug costs but also affect availability.
Omaruaye, who also serves as the Managing Director of New Height Pharmaceuticals in Lagos, highlighted the heightened distribution costs to northern regions due to both insecurity and poor infrastructure. He noted, “Delivering medicines to the North is significantly more expensive and challenging due to these factors. Security issues force us to avoid certain areas, leading to extended delivery times. What used to take 48 to 72 hours now takes one to two weeks, especially in regions like Borno State.”
He pointed out that logistical challenges also include restrictions on delivery times and locations, which complicate the process further. “For instance, shipments to the South East must avoid Mondays, and we face difficulties sending staff to work in these insecure areas,” he added.
Omaruaye stressed the need for the government to tackle insecurity and subsidize logistics to lower drug costs.
He also emphasized the impact of forex volatility on drug prices, as the pharmaceutical sector relies heavily on imported raw materials. Local manufacturers are particularly affected by high costs for forex and electricity, which contribute to the overall increase in drug prices.
