Nigeria’s pharmaceutical industry has recorded a 25 percent rise in local manufacturing, signalling a major shift from import dependence as contract manufacturing expands, new facilities emerge, and reliance on international drug supply chains declines.
The development is emerging as one of the strongest signs yet of a changing pharmaceutical landscape, with more companies investing in domestic production and reducing reliance on international supply chains, reports Daily Independent.
The Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye, disclosed that companies engaged in contract manufacturing had risen sharply from 10 in 2019 to 87 in 2026.
Adeyeye spoke over the weekend at the just-concluded Invest in Nigeria Conference and Expo 4.0, organised by the Lagos Chamber of Commerce and Industry (LCCI), where she urged foreign investors from more than 43 countries to establish operations in Nigeria.
She said the growth of contract manufacturing was reducing reliance on international supply chains, while enabling companies to establish production through suitably qualified local manufacturers.
The shift has been reinforced by growing investments in existing and new pharmaceutical facilities, with the number of pharmaceutical manufacturing companies increasing from 174 to 190.
Adeyeye said existing manufacturers were undergoing retrofitting and upgrades to meet current Good Manufacturing Practice (cGMP) standards, as the industry responds to the changing demands of local production.
As of June 2026, she said, 176 pharmaceutical companies had undergone facility layout reviews and approvals by NAFDAC, comprising 70 existing companies and 106 new companies.
She disclosed that 37 existing manufacturers were undergoing construction and upgrades, while 28 had completed construction and were already operational.
The expanding production base has coincided with a major reduction in imports of drug products covered by the 5+5 Policy and Ceiling List, which Adeyeye said had declined by 70 percent.
The impact is reflected in the changing balance between imported and locally manufactured pharmaceutical products, with the ratio moving from 70:30 in 2019 to 50:50 in 2025.
Adeyeye attributed the development to initiatives designed to encourage local production of medicines that Nigerian manufacturers have the capacity to produce.
Under the 5+5 Policy, introduced by NAFDAC in 2019, selected medicines that can be manufactured locally are prohibited from importation and required to be produced within Nigeria.
The Ceiling List has also expanded the number of products restricted from importation from nine in 2020 to 36.
Adeyeye said the initiatives had triggered increased facility layout submissions by pharmaceutical and medical device companies, further expanding the pipeline for domestic manufacturing.
The transformation is also spreading into medical devices and In-vitro Diagnostics (IVDs), with international investors entering joint ventures with Nigerian firms to establish local manufacturing facilities.
According to Adeyeye, 16 new pharmaceutical manufacturers and six new medical device and IVD manufacturers were emerging, with their facilities aligning with regulatory standards, including HVAC systems and other critical infrastructure.
Overall, she said the initiatives had produced 28 newly developed and retrofitted companies and 16 new facilities, bringing the total to 44 and resulting in a 25 per cent increase in local manufacturing.
NAFDAC, she said, would continue supporting manufacturers through regulatory handholding and Corrective Action and Preventive Action (CAPA) clinics to address compliance challenges and improve production standards.
Adeyeye also urged investors to take advantage of President Bola Tinubu’s 2024 Executive Order, which provides zero tariffs, excise duties and Value-Added Tax (VAT) on imported machinery, equipment and raw materials for local healthcare manufacturing.
She urged stakeholders to embrace the Executive Order, saying the increase in local manufacturing was in tandem with the Federal Government’s policy.
Beyond pharmaceuticals, NAFDAC is pursuing Global Listing Re-evaluation in the food and cosmetics sectors to identify products that can be manufactured locally.
Adeyeye said the agency remained committed to market-friendly, innovation-driven regulation to strengthen Nigeria’s food and drug security.
With contract manufacturing rising from 10 companies to 87 in seven years, new facilities emerging and pharmaceutical imports covered by the initiatives falling sharply, Nigeria’s drug industry is increasingly turning towards domestic production.
