A public policy expert, Valentine Achum has decried an emerging monopolistic trend in Nigeria’s pharmaceutical space as international drug manufacturers exit the country.
   
Achum warned that the multinational companies exiting the country are leaving the distribution of their products in the hands of foreign-run distributors, who are replacing the entire networks of indigenous distributors in the value chain.
  
Speaking in Lagos, he cited multinationals such as GlaxoSmithKline (GSK), which announced plans to discontinue operations in Nigeria, in August 2023, ending its 51-year existence in the country.
    
Achum said: “When multinationals like GSK and Sanofi left, they opted for a distributor-led approach to the sale of their products in the country.”He said by doing that, they may create a major problem for consumers if the relevant authorities like the National Agency for Food and Drug Administration (NAFDAC) and Federal Competition and Consumers Protection Commission (FCCPC) do not act to protect Nigerians.
  
He cautioned that “What is being observed is that these companies may end up fostering upon us, monopolies that are foreign-owned, with the attendant effect.
 
“By monopolising distribution channels, these companies will not only dictate prices but also wield disproportionate influence over the availability and accessibility of essential medications, further imperiling the health and well-being of Nigerians.”
  
Achum stressed that the ownership of such a significant asset by a foreign-owned entity raises concerns about the country’s drug security. “With critical decisions regarding pharmaceutical access and availability resting in the hands of foreign interests, the primary consideration shifts away from the welfare of Nigerians to making a profit, thereby posing a significant risk to national health security,” he said.
   
Achum, who is the National Policy Advisor for the SOS Children’s Villages International, noted that the current situation is a blow to the Federal Government’s local content policy. “In addition to the inherent risks posed by monopolistic control, the situation runs counter to the government’s local content policy, depriving indigenous companies of opportunities to develop essential competencies and contribute to the growth of the Nigerian pharmaceutical sector,” he said.
  
He said the situation creates a dependency on a single source for some essential medications, leaving the healthcare system vulnerable to disruptions in supply chains, shortages, and price fluctuations.
  
This lack of diversity and resilience in the distribution network, Achum said, also undermines the stability and reliability of pharmaceutical access, posing a grave risk to public health and well-being, according to the policy expert.
    
“Any decision to operate through a single distributor by multinational companies disregards the principles of fair competition and market diversity, stifling opportunities for smaller, indigenous distributors to participate in the industry. This not only hampers economic growth and job creation but also limits the potential for innovation and entrepreneurial development within the pharmaceutical sector,” he said.