The Director-General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye, has stated that the departure of GlaxoSmithKline (GSK) from Nigeria should not be held responsible for the rise in drug prices within the country.
Adeyeye made this statement in response to speculations regarding GSK’s exit and its potential impact on drug prices in Lagos over the weekend.
GSK, a British multinational pharmaceutical and biotechnology company, had announced its intention to cease operations in Nigeria back in August.
The company had a longstanding presence in Nigeria, having been incorporated in June 1971 and commencing business the following year.
Adeyeye explained that there were multiple factors contributing to the increase in drug prices.
Firstly, she cited the depreciation of the Nigerian currency, the naira, as a significant factor. She noted that even before GSK’s planned exit, the prices of various commodities had been on the rise, and some of the products produced by GSK had become scarcer.
From a regulatory standpoint, Adeyeye emphasized NAFDAC’s encouragement of local drug manufacturing. She clarified that GSK had collaborated with local manufacturers, indicating that they didn’t solely rely on imports for their products.
She further elaborated that foreign exchange issues posed challenges for multinational companies. These companies generate funds locally, but repatriating these funds to their parent companies, where further developments occur, can be problematic due to foreign exchange restrictions.
In summary, Adeyeye highlighted that while GSK’s exit had its own implications, it was just one of several factors influencing drug prices, with currency depreciation being a significant contributor to the overall increase.
