NAFDAC Policies Drive Pharmaceutical Manufacturing Boom, Cut Drug Imports By 70%

The National Agency for Food and Drug Administration and Control (NAFDAC) has disclosed that its 5+5 Policy and Ceiling List initiative have significantly boosted local production of medicines and medical devices, reducing the country’s dependence on imported pharmaceutical products.

The Director-General of NAFDAC, Prof. Mojisola Adeyeye, disclosed this at the recently concluded 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 evolving regulatory framework and invest in local pharmaceutical manufacturing.

According to Adeyeye, the number of pharmaceutical manufacturing companies operating in Nigeria has risen from 174 to 190 as the impact of the agency’s local manufacturing policies continues to deepen.

She explained that the 5+5 Policy, introduced by NAFDAC in 2019, was designed to gradually phase out the importation of selected medicines for which Nigerian manufacturers have demonstrated sufficient capacity to produce locally.

In a press release issued by the agency’s media consultant, Sayo Akintola.the DG stressed that under the policy, such products are restricted from importation and are required to be manufactured within Nigeria Companies interested in producing them are expected to establish local facilities or engage suitably qualified Nigerian manufacturers through contract manufacturing arrangements.

Adeyeye said the ceiling list had further strengthened the drive for local production by expanding the number of products restricted from importation from nine in 2020 to 36.

She noted that the two initiatives had triggered a significant increase in facility-layout submissions by pharmaceutical and medical-device manufacturers seeking NAFDAC approval.

According to her, as of June 2026, 176 pharmaceutical companies comprising 70 existing and 106 new companies had undergone facility-layout reviews and approval by the agency.

“This trend indicates a clear shift from importation to local production and reflects growing industry confidence and investment,” she said.

The NAFDAC boss disclosed that importation of pharmaceutical products affected by the two policies had declined by 70 per cent, while the ratio of imported to locally manufactured pharmaceutical products improved from 70:30 in 2019 to 50:50 in 2025.

She attributed the development partly to the Federal Government’s Presidential Executive Order 2024, which provides zero tariffs, excise duties and Value-Added Tax (VAT) on imported machinery, equipment and raw materials for local healthcare manufacturing.

Adeyeye urged investors to leverage the incentives provided by the Executive Order, stressing that the regulatory and fiscal environment now presents significant opportunities for investment in Nigeria’s pharmaceutical and medical-device industries.

She also disclosed that contract manufacturing had expanded rapidly, with the number of companies engaged in the arrangement increasing from just 10 in 2019 to 87 in 2026.

According to her, the development is helping companies reduce their reliance on international supply chains while enabling them to establish sustainable and scalable operations in Nigeria.

She added that several existing manufacturing facilities were undergoing retrofitting and upgrades to meet current Good Manufacturing Practice (cGMP) standards.

The DG explained that companies seeking to operate as contract manufacturers must satisfy stringent regulatory requirements and demonstrate sufficient idle production capacity to manufacture products on behalf of contract-giving companies.

She said NAFDAC would continue to provide regulatory support to manufacturers through handholding initiatives and Corrective Action and Preventive Action (CAPA) clinics aimed at helping companies meet required standards.

Adeyeye further disclosed that 37 existing manufacturers were currently undergoing construction and upgrading, while 28 existing manufacturers had completed construction and commenced operations.

She noted that the sector had also witnessed increased foreign investment, particularly in medical devices, with international investors entering into joint ventures with Nigerian companies to establish local manufacturing facilities.

There has equally been increased technology transfer involving formulations for which local manufacturing capacity already exists, she said.

The NAFDAC boss revealed that 16 new pharmaceutical manufacturers and six new medical-device and In-vitro Diagnostics (IVDs) manufacturers had emerged, with the new facilities increasingly aligning their operations with regulatory requirements, including the installation of Heating, Ventilation and Air Conditioning (HVAC) systems and other critical infrastructure.

Giving an overall assessment of the impact of the 5+5 Policy and Ceiling List, Adeyeye said 28 newly developed and retrofitted companies, alongside 16 new facilities, had brought the total to 44 facilities and resulted in a 25 per cent increase in local manufacturing.

She said NAFDAC was also deploying a Global Listing Re-evaluation strategy in the food and cosmetics sectors to identify products that could be manufactured locally and encourage domestic production.

Adeyeye reiterated NAFDAC’s commitment to promoting local manufacturing as part of efforts to strengthen Nigeria’s food and drug security through market-friendly and innovation-driven regulatory policies.

She, however, called for sustained collaboration between the agency and industry stakeholders to ensure effective implementation of local manufacturing policies and regulatory directives.

The NAFDAC DG maintained that the surge in local pharmaceutical manufacturing was consistent with the Federal Government’s broader industrialisation agenda and the Presidential Executive Order designed to stimulate domestic healthcare production and attract investment into the sector.