2013-08-22 09:12:29 - Recently published research from Business Monitor International, "Nigeria Pharmaceuticals & Healthcare Report Q4 2013", is now available at Fast Market Research
Ensuring large low-income populations of developing countries have access to primary healthcare services is dependent on two key factors: financial and geographical positioning. The latest Community Based Health Insurance Scheme in Nigeria, which is based on a US$1 individual contribution to receive healthcare coverage, is easily affordable by most Nigerians. However, despite solving the financial access problem to healthcare services, up take will still be hindered by poor geographical access. Developing hospital infrastructure and improving poor primary healthcare services in remote and rural areas is a relatively long process.
Headline Expenditure Projections
* Pharmaceuticals: NGN171.2bn (US$1.08bn) in 2012 to NGN201.3bn (US$1.26bn) in 2013; +17.6% in local currency terms and +16.9% in US dollar terms. Forecasts revised slightly upwards due to modifications
to historical figures.
* Healthcare: NGN2,339.2bn (US$14.7bn) in 2012 to NGN2,693.7bn (US$16.9bn) in 2013; +15.2% in local currency terms and +14.6% in US dollar terms. Forecasts revised slightly upwards due to modifications to historical figures.
Full Report Details at
- www.fastmr.com/prod/670579_nigeria_pharmaceuticals_healthcare_re ..
In Q413, Nigeria maintained its Q313 Pharmaceutical Risk/Reward Rating (RRR) score of 38 out of 100, making it the 21st most attractive pharmaceutical market in the Middle East and Africa. Nigeria is regarded as a low-reward, high-risk proposition for multinationals due to drug counterfeiting, corruption and poor pharmaceutical regulations governing the market.
Key Trends And Developments
LAUTECH Pharmaceutical Company, registered by the Ladoke Akintola University of Technology (LAUTECH) Teaching Hospital, was approved by the Pharmacists' Council of Nigeria (PCN) to start producing medicines on a commercial scale. PCN has granted LAUTECH Pharmaceutical Company the authority to produce oral liquid preparations.
Nigeria spends over NGN1.5bn (US$9.4mn) annually on importing active pharmaceutical ingredients (APIs) from India, the US and Germany, among other markets, equating to over 85% of its API needs, according to Business Day. Nigeria cannot manufacture APIs because its underdeveloped local chemical industry does not have the capacity to do so, and there is little government commitment to encourage investment in the sector.
The Community Based Social Health Insurance Scheme (CBSHIS) is scheduled to be implemented throughout Nigeria by 2015. The healthcare system is designed to operate on a community level and is intended to offer coverage to every citizen in the country, said Abdulrahman Sambo, the acting National Health Insurance Scheme Secretary. The scheme is contributory in terms of which individuals are likely to offer financial contribution on a regular basis, and subsidies will be provided to individuals who cannot afford the contribution along with the aid needed to ensure that they can benefit from the coverage, said Sambo.
The World Health Organisation (WHO) will decide on five local pharmaceutical firms that will receive prequalification status to participate in international tenders before December 2013, according to Business Day. These firms include Evans Pharmaceuticals (part of Evans Medical), May and Baker, Fidson HealthCare, SWIPHA and CHI Pharmaceuticals. The listed firms have met most of WHOs conditions for prequalification, with the exception of CHI Pharmaceuticals, which is a distributor of multinational companies' products in the local market. The four remaining companies are manufacturers of either branded generic medicines or over-the-counter medicines.
BMI Economic View: The Nigerian economy still faces major headwinds in the crucial oil and gas sector, but other sectors, notably agriculture, have started to pick back up. We are forecasting real GDP growth of 6.7% in 2013, a rate below Nigeria's substantial potential but a slight improvement on the previous year.
BMI Political View: On a number of different fronts, deep divisions remain between Nigeria's rapidly growing, economically vibrant southern states, and the restive, economically struggling areas in the north. This has persisted, and in some cases worsened, despite longstanding government acknowledgment of the problem, and efforts to reverse the trend.
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