Nigeria should move away from scattered drug factories and adopt integrated pharmaceutical hubs to cut costs, reduce imports and strengthen its health security, industry expert Chimezie Anyakora has said.
Anyakora, chief executive of Bloom Public Health, speaking at the 3rd Pharma West Africa Conference in Lagos, said the country and wider Africa risk falling behind in the global health supply chain unless they build coordinated manufacturing ecosystems.
He proposed a Pharmacity hub, a purpose-built industrial zone hosting 20 to 50 pharmaceutical firms alongside regulators, logistics providers and research institutions, to improve efficiency and lower production costs.
“Individual manufacturers are carrying too much burden. If we bring them together into shared infrastructure, we reduce duplication, improve quality and make local production more competitive,” he said.
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Africa imports about 70 percent to 90 percent of its medicines, leaving it exposed to global supply shocks, a weakness that became clear during the COVID-19 pandemic. Nigeria produces roughly half of its drug needs locally, according to data cited by Anyakora, but still relies heavily on imports for key inputs such as active pharmaceutical ingredients (APIs).
Analysts say this dependence, combined with foreign exchange shortages and high energy costs, has made locally produced drugs more expensive than imports, squeezing domestic manufacturers.
Anyakora advocated integrated hubs could address these challenges by providing shared access to power, water, laboratories, warehousing and waste management systems. This would reduce operating costs and help companies meet international quality standards.
The model could also improve regulatory oversight and reduce counterfeit drugs, a long-standing problem in Nigeria’s pharmaceutical market. Weak supply chains and fragmented distribution networks have allowed fake medicines to circulate, posing risks to public health.
“Counterfeiting thrives where there are gaps. A coordinated hub system helps close those gaps from production to distribution,” Anyakora said
He added that such hubs would support research and innovation, while creating a pathway for local production of APIs, a critical step toward full pharmaceutical independence.
Policy push and AfCFTA opportunity
Anyakora said growing political will across African countries to boost local manufacturing is a positive sign, but warned that policy support must match ambition.
He called for tax breaks, duty waivers on equipment and raw materials, and better access to foreign exchange for manufacturers. He also urged the government to simplify regulations and adopt procurement policies that favour locally made medicines.
Without these incentives, he said, Nigeria’s pharmaceutical sector would struggle to compete with imports.
The African Continental Free Trade Area (AfCFTA) offers a major opportunity for Nigeria to become a regional export hub, but only if production capacity improves.
“AfCFTA gives us a market, but we must have the capacity to supply it,” Anyakora said.
Industry experts say cluster-based industrialisation has worked in sectors such as textiles and technology globally, helping firms scale faster and reduce costs through shared services.
Economic and health impact
If implemented, pharmaceutical hubs could help Nigeria reduce its import bill, create jobs and improve access to affordable medicines, Anyakora said.
They could also strengthen the country’s response to future health crises by ensuring more reliable local supply chains.
However, execution risks remain. Past industrial policies in Nigeria have been slowed by inconsistent regulation, infrastructure gaps and funding constraints.
Anyakora said success would depend on strong coordination between government, private investors and regulators.
“This is not just an industrial policy issue, it is a health security issue,” he said.
He warned that without urgent reforms, Nigeria could miss a critical window to position itself as a leader in Africa’s pharmaceutical manufacturing landscape.
“Countries that build capacity now will dominate the future supply chain. Nigeria has the potential, but it must act fast,” he added.
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