Nigeria’s dependence on imported medicines is declining, with drug imports in categories targeted by the National Agency for Food and Drug Administration and Control (NAFDAC) falling by 70 per cent, the agency has said.
At the same time, local pharmaceutical manufacturing has grown by 25 per cent, signalling a major shift towards domestic production, according to NAFDAC Director-General, Prof. Mojisola Adeyeye in a statement issued on Sunday.
Adeyeye disclosed this at the Lagos Chamber of Commerce and Industry (LCCI) Invest in Nigeria Conference and Expo 4.0, where she urged foreign investors from more than 43 countries to take advantage of Nigeria’s changing pharmaceutical and medical-device regulatory environment.
She attributed the development largely to NAFDAC’s “5 Plus 5” policy and Ceiling List initiative, which restrict the importation of selected medicines that can be produced locally.
The 5+5 policy, introduced in 2019, was designed to phase out the importation of medicines for which Nigerian manufacturers have demonstrated sufficient production capacity.
Under the policy, companies seeking to supply affected products are required either to establish manufacturing facilities in Nigeria or enter into contract-manufacturing arrangements with qualified local manufacturers.
The Ceiling List has similarly expanded the number of products subject to import restrictions, rising from nine in 2020 to 36.
Adeyeye said the combined effect of the policies had significantly altered the balance between imported and locally manufactured medicines.
She said the ratio, which stood at 70:30 in favour of imported pharmaceutical products in 2019, had moved to 50:50 by 2025.
“This trend indicates a shift from importation to local production, reflecting growing industry confidence and investment,” she said.
The development has also been accompanied by an increase in the number of pharmaceutical manufacturers operating in the country, which rose from 174 to 190.
Adeyeye said 176 pharmaceutical companies had undergone facility layout review and approval by NAFDAC as of June 2026.
The figure comprised 70 existing companies and 106 new companies, indicating increased investment in pharmaceutical manufacturing facilities.
Another major change has been the rapid expansion of contract manufacturing.
According to Adeyeye, the number of companies engaged in contract manufacturing increased from only 10 in 2019 to 87 in 2026.
She said the arrangement was helping companies utilise existing manufacturing capacity while reducing dependence on overseas production and international supply chains.
“The rise in contract manufacturing reflects a strategic move toward sustainable and scalable local operations,” she said.
She added that existing facilities were being retrofitted and upgraded to comply with current Good Manufacturing Practice (cGMP) requirements.
NAFDAC said 37 existing manufacturers were currently undertaking construction and upgrading, while 28 had completed construction and were already operational.
The agency also recorded 16 new pharmaceutical manufacturers and six new medical-device and in-vitro diagnostics (IVD) manufacturers.
Adeyeye said the overall impact of the 5+5 and Ceiling List initiatives included 28 newly developed or retrofitted companies and 16 new facilities, bringing the total to 44 facilities and translating to a 25 per cent increase in local manufacturing.
She said the pharmaceutical sector had received an additional boost from President Bola Ahmed Tinubu’s 2024 Executive Order providing zero tariffs, excise duties and Value-Added Tax (VAT) on imported machinery, equipment and raw materials required for local healthcare manufacturing.
According to her, the fiscal incentives, combined with NAFDAC’s regulatory measures, were helping to create a more favourable environment for domestic pharmaceutical investment.
The NAFDAC boss also disclosed that foreign investment was increasing, particularly in the medical-device sector.
She said international investors were entering into joint ventures with Nigerian companies to establish local manufacturing facilities, while technology transfer involving formulations that can be produced locally was also increasing.
Adeyeye urged investors to leverage the reforms and establish manufacturing operations in Nigeria rather than relying solely on imports.
She said NAFDAC would continue to provide regulatory support to manufacturers through technical “handholding” and Corrective Action and Preventive Action (CAPA) clinics.
Beyond pharmaceuticals, she disclosed that NAFDAC was developing a similar strategy for the food and cosmetics sectors through a Global Listing Re-evaluation initiative.
The initiative is expected to identify imported products that can be manufactured locally and encourage domestic production.
Adeyeye said strengthening local manufacturing remained critical to Nigeria’s food and drug security, adding that the agency would continue to promote market-friendly and innovation-driven regulatory policies.
She urged manufacturers and other stakeholders to collaborate with NAFDAC to sustain the gains recorded in domestic production.
“The increase in local manufacturing is in tandem with the Executive Order of the Federal Government. We should embrace it,” she said.