NIGERIA PHARMACEUTICAL MARKET OVERVIEW

• The pharmaceutical industry is broadly grouped into the branded, generic and Over TheCounter (OTC). Although there are over 130 pharmaceutical manufacturing companies in Nigeria, Nigeria still imports over 80% of its pharmaceutical need with all activepharmaceutical ingredients (APIs) used in Nigeria being imported, mainly from India and China. In most cases, both primary and secondary packaging materials are obtained locally.
• Nigeria's pharmaceutical market is experiencing a surge in demand for locally produced generic drugs.
• Nigeria is the largest growing economy in the West Africa Region.
• One important aspect to consider about the Nigerian pharma market is the population is seeing strong growth. The current estimate of 220 million is expected to reach 262 million by 2030, and become the planet’s fifth largest population of 400 million by 2050.
• Nigeria alone spends over $1.5 billion annually on pharmaceutical imports, reflecting the region’s heavy reliance on international manufacturers to supply essential medicines.
• There is a steady increase in demand of Medicines and Health Supplies in Uganda which is indicative of the growing market.

NIGERIA PHARMACEUTICAL MARKET STATISTICS

• Nigeria's pharmaceutical market is the largest in West Africa, experiencing robust growth with a projected value rising from $2.35 billion (3.53 trillion) in 2022 to $4.2 billion (6.3 trillion) by 2028.
• The Nigerian pharmaceutical market is a large and growing market with significant potential for growth. Over 80% of medicines in Nigeria are imported, with medicines accounting for perhaps $4 billion within Nigeria’s total healthcare spend of $10 billion. Out-of-pocket expenditure can be as high as 62% of total healthcare expenditure, mainly due to limited access to health insurance.
• Nigeria has about 80,000 retail pharmacies and out of that about 4,500 are only registered pharmacies, and more than 70% of revenue potential lies in unregistered and informal outlets served by some 200 wholesalers.
• 45% of the pharmaceutical consumption is concentrated in the top five Nigerian cities, and per capita spending in big cities can reach almost twice the national average. Cities are important for another reason too: their superior logistics, infrastructure, andhealthcare capabilities make them an engine for structural changes in Nigeria’s health system.
• Nigeria continues to rely on pharmaceutical imports to meet local demand, despite government aims to make Nigeria’s pharmaceutical market self-sufficient, there continues to be litile local drug production. Total Pharmaceutical and medical importation of Nigeria in 2021 touched USD 2.5Bn, with pharmaceutical imports touching USD 1.4Bn and rest is medical equipment’s and devices.
• India is the largest supplier to the Nigeria Pharmaceutical and Medical equipment market, with exports touching USD 442Mn in 2022, followed by Netherlands, China UAE Denmark France and others among the top suppliers.
• As the second largest economy in Africa with a growing middle class and pro-reform government committed to strengthening the healthcare system, the Nigerian medical device market is set to be beneficial to the country and get better.
• While recent macroeconomic headwinds have affected the affordability of treatment, the country’s large and growing population, rising demand for specialty services and the government’s willingness to plan and partner with private providers should help considerably in improving the quality, access and outcomes of patient care in the years to come.