NIGERIA: Nigeria’s Health Sector To Benefit From More Than 70 Manufacturing Companies – Pate

By Ameenat Hamzat, Lagos, Nigeria 

The Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, has revealed that over 70 healthcare manufacturing companies are set to execute 22 major projects across Nigeria.

These initiatives, which will cover more than 10 value chain verticals, are a key part of the Nigerian government’s efforts to transform the health sector into an empowering and value-generating industry.

Prof. Pate, in a statement posted on his X handle, stated that these developments align with President Bola Tinubu’s vision to transform the Nigeria health sector from a consumption-driven model to one that supports economic growth, empowerment, and employment.

In October 2023, President Tinubu launched the Presidential Initiative to unlock the Healthcare Value Chain. Headed by the National Coordinator, Abdu Mukhtar, the initiative was aimed at increasing the local manufacturing of pharmaceutical products to at least 70 percent of national consumption by 2030.

It was also designed to expand the workforce in the life sciences manufacturing sub-sector to at least 50,000 full-time employees from the current estimated 20,000, among other objectives.

Prof. Pate noted that the President has signed an executive order to stimulate domestic production of pharmaceuticals, test kits, medical textiles, and consumables, acknowledging initial implementation challenges that have now been addressed through collaboration with key stakeholders.

“While it is important to acknowledge that some initial implementation challenges occurred, these have now been collaboratively resolved with all key stakeholders. I am pleased to report that this policy is now positioned to achieve its intended objectives,” Pate stated

He further shared the progress on the initiative, revealing several substantial investments, including funding from the European Investment Bank and a $1 billion Memorandum of Understanding with Afreximbank to support manufacturers in the health and life sciences sectors.

He also added that five development finance institutions are collaborating to unlock dedicated financing platforms for Nigeria’s healthcare value chain.

Prof. Pate also noted that over 70 healthcare manufacturers with solid business cases are in active discussions to execute 22 large-scale projects.

“More than 10 value chain verticals have been established in-country, including the manufacturing of rapid diagnostic test kits. This effort is exemplified by our MoU with South Africa-based Abbott Diagnostics, which is already producing in Lagos,” he said.

Prof. Pate, in the statement, highlighted other key investments, including a partnership with the Global Gases Group to establish a cryogenic air separation plant for medical oxygen and a deal with Siemens Healthineers to set up an ultrasound assembly plant in Nigeria.