The Managing Director and Chief Executive Officer of May & Baker Nigeria Plc, Pharm. Patrick Ajah, has called for stronger government support for local pharmaceutical manufacturers, warning that rising production costs, high interest rates, infrastructure gaps and brain drain are threatening the sector.
Ajah said the company’s monthly expenditure on power had risen from about ₦65 million before 2023 to between ₦160 million and ₦175 million, placing a heavy burden on manufacturers.
He spoke in his office in Lagos during the presentation of the 2026 Excellence in Leadership Award plaque to him by the Akinjide Adeosun Foundation (AAF).
According to him, many manufacturers arep forced to provide their own power and other infrastructure, making it difficult for companies to remain competitive and expand production.
“Before 2023, our spending on power monthly was about ₦65 million. Now, we are spending between ₦160 million and ₦175 million just for the factory,” Ajah said.
He said the rising cost of doing business was among the reasons pharmaceutical manufacturers needed an improved operating environment.
The May & Baker chief also identified the migration of pharmacists and other skilled professionals as an emerging challenge for the sector, saying pharmaceutical companies were increasingly finding it difficult to retain qualified personnel.
He said the company was working with pharmacy schools to expose students to opportunities in local pharmaceutical manufacturing and encourage more young professionals to pursue careers in the industry.
According to him, May & Baker provides opportunities for pharmacy students to visit its facilities and undertake internships as part of efforts to demonstrate the prospects available within the sector.
“We are offering opportunities for pharmacy students to come to our facility every year,” he said, adding that the company hoped that early exposure to pharmaceutical manufacturing would encourage some young professionals to remain in Nigeria.
Ajah also urged the government to introduce measures that would make it easier for companies to retain skilled workers, including improving wages and creating a more enabling business environment.
On local drug production, he said Nigeria had made progress, although the gains were largely driven by the commitment of local manufacturers rather than sufficient government intervention.
He said an executive order granting duty waivers on some locally produced pharmaceutical products was a welcome development but insufficient to address the broader challenges facing manufacturers.
According to him, Nigeria now has nearly 200 local pharmaceutical manufacturers, and locally produced medicines account for more than 40 per cent of the market, up from about 30 per cent in previous years.
Ajah said increased local manufacturing would help reduce dependence on imported medicines, lower prices, conserve foreign exchange and make it easier to tackle counterfeit drugs.
He noted that the exit of several multinational pharmaceutical companies had created opportunities for indigenous manufacturers but said local firms were yet to fully fill the gaps.
He stressed the need for Nigeria to strengthen local production of essential medicines, including antibiotics, antidiabetic and antimalarial drugs, as well as other medicines required by low-income patients.
He said access to affordable medicines remained critical, warning that sharp increases in prices could force many patients to abandon treatment.
Ajah said the presence of local manufacturers across the country could also help in the fight against counterfeit medicines.
According to him, companies with established distribution networks and personnel across the country can more easily detect suspicious products and alert regulatory authorities.
He, however, said the size of Nigeria and the scale of the pharmaceutical market made the fight against counterfeit drugs challenging, despite the efforts of regulatory agencies.
Ajah also said instability in the foreign exchange market had significantly affected pharmaceutical manufacturers, particularly between 2023 and 2025.
He said uncertainty over the exchange rate made planning difficult and forced some companies to consider frequent price adjustments.
“Despite the fact that it is still high, the fact that it is a bit stable has made things a lot easier,” he said.
He added that improved stability in the exchange rate had helped May & Baker manage its operations and avoid frequent increases in the prices of its products.
The May & Baker CEO, however, expressed concern over the discontinuation of some intervention funds for manufacturers, saying affordable credit remained crucial for the expansion of pharmaceutical production.
He said the company benefited from the Central Bank of Nigeria’s COVID-19 intervention fund, which provided single-digit financing for expansion and the acquisition of machinery.
According to him, such funding enabled the company to invest in projects that would have been too risky to finance with commercial bank loans.
Ajah said the company established a hub for packaging and commercialising products developed from natural sources in Nigeria, including a sickle cell product and a bitter leaf capsule.
He said more affordable long-term financing was needed to support pharmaceutical research and commercialisation.
“No company like ours would borrow money at 33 per cent and invest in a factory,” Ajah said, noting that pharmaceutical manufacturing investments could take several years to break even.
He called on the CBN and the Bank of Industry to reconsider their approach to intervention financing for manufacturers, particularly local pharmaceutical companies.
Ajah said May & Baker had recorded significant growth over the past five years and was attracting interest from potential investors in Europe and the United States.
He said the company had quadrupled its revenue over the period and was targeting further growth in the coming years.
However, he said insecurity and poor infrastructure could discourage investors seeking opportunities in Nigeria.
Ajah disclosed that the company restricts its representatives from travelling to some parts of the country because of security concerns.
He said Nigeria had significant potential to attract investment, particularly as investors looked for opportunities beyond Europe and the United States, but urged the government to improve security and infrastructure.
“We need a conducive environment for people to make investments,” he said.
Ajah added that the country could significantly expand its pharmaceutical manufacturing capacity and fill gaps left by multinational companies if government policies consistently supported local producers.
He also said leadership should focus on helping people achieve collective goals rather than personal interests, adding that leaders must recognise the responsibility placed on them by those who look up to them.
“Leadership is not about what you can get for yourself. It is about how you lead people to that goal,” he said.