Why is Nigeria in such a Perilous Situation?

Highlights

Drug and medication costs in Nigeria have skyrocketed

The rising cost of drugs has been associated with the depreciation of the naira along with the elimination of gasoline subsidies.

The non-availability plus higher cost of many drugs has created a worrisome situation in Nigeria. These factors have hampered the treatment at healthcare facilities ranging from primary to tertiary, as well as governmental and private institutions.

The primary reason for this situation has been linked to the naira’s depreciation and cessation of fuel subsidies. These economic issues have a substantial influence on healthcare accessibility, raising the cost of imported drugs. As a result, pharmaceutical firms have passed the expenses on to customers, thereby elevating the prices.

Furthermore, the elimination of fuel subsidies has increased transportation and operating expenses for enterprises, especially those in the healthcare industry. These additional costs are also passed on to customers. This has worsened the financial strain on those in search of medical treatment.

Another cause is the absence of widespread and comprehensive health insurance coverage, which forces Nigerians to pay for healthcare out of pocket, in contrast to worldwide best practices.

Mr Samuel Okuwada, Chief Executive Officer and Co-Founder of Remedial Health, a drug distribution company in Lagos, stated that the average price of imported drugs has increased by 200 percent in the last six months. On the other hand drugs manufactured in Nigeria have increased by about 40 percent in the same period.

He added that multinational pharmaceutical companies have failed to prioritise Nigeria due to business challenges. The roadbloacks include an inability to repatriate dollars to the home countries, bad roads, multiple taxes, high electricity costs, and the high dollar-to-naira exchange rate.

Okuwada also pointed out that Nigeria must develop rules and regulations allowing entrepreneurs to produce active pharmaceutical ingredients along with other medications in the country.

According to Comrade Olusegun Abatan, Executive Secretary of the Nigeria Union of Seniors (NUP), Oyo State Council, the rising cost of medication has been a traumatic experience for many elderly people, who are unable to pay for even basic drugs.