How Nigerians are Coping with the Skyrocketing Prices of Drugs and GSK’s Exit

Nigerians are facing a double whammy of scarcity and high cost of essential drugs and healthcare products, following the news that GlaxoSmithKline (GSK), one of the country’s leading pharmaceutical companies, is exiting the Nigerian market.

GSK produces some of the most popular brands of prescription medicines, vaccines, and consumer healthcare products, such as Panadol, Macleans, Andrew Liver Salt, and Amoxil.

The exit of GSK, which has been operating in Nigeria since 1971, is a blow to the already struggling healthcare sector in the country.

According to a Daily Post survey, corroborated by some medical doctors and hospital pharmacists, prices of drugs and medical services have risen sharply by at least 80 per cent to 150 per cent in the last two months. This is due to the free fall of the naira, which has lost more than 40 per cent of its value against the US dollar since June.

Some examples of the price hikes are:

• Ciprotab (Fidson), an antibiotic tablet, used to cost an average of N2,300. Today, it goes for between N3,000 and as much as N3,500 in some retail shops.
• Ventolin inhaler (by GSK Pharmaceuticals) cost an average of N4,500 per canister two months ago. Today, it goes for between N6,500 and N12,000 in some retail shops.
• Augmentin used to cost N5,000. Today, it costs N17,000.

These drugs are vital for treating common ailments such as infections, asthma, and pain. However, many Nigerians can no longer afford them and have resorted to traditional medicine or self-medication.

A media consultant to the National Agency for Food, Drugs Administration and Control (NAFDAC), Sayo Akintayo told DAILY POST that the agency has no control over the price of drugs. He said that the price is determined by the manufacturers based on their cost of production and other economic variables. He added that NAFDAC’s role is to ensure that the drugs are safe, effective, and of good quality for human consumption.

The National President of the National Association of Resident Doctors (NARD), Dr Emeka Orji blamed the current government’s economic policies for worsening the situation. He cited the removal of fuel subsidy and the floating of the naira as factors that have increased inflation and exchange rate volatility. He said that many of the drugs and pharmaceutical products used in Nigeria are either imported or depend on imported components.

He suggested that the government should increase access to healthcare by implementing a comprehensive healthcare insurance scheme in the country. He also called for more investment in local drug production and research to reduce dependence on foreign products.

The President of the Association of Bureaux De Change Operators of Nigeria (ABCON), Dr Aminu Gwadabe urged the government to enhance financial intelligence and track down people with proceeds of corruption who are manipulating the forex market. He said that these people are creating artificial scarcity of dollars and putting pressure on the naira.

He also advised Nigerians to reduce their consumption of imported goods and services, especially food and energy, which account for a large chunk of the forex demand. He said that improving domestic production and security would help to stabilize the naira.

Richard Obire, a former executive director of Keystone Bank Limited agreed with Gwadabe’s views, saying that Nigeria’s consumption pattern is skewed towards foreign products, which drains its foreign reserves. He also blamed corruption-driven capital flight for weakening Nigeria’s productive capacity.

He proposed some short-term measures to increase the supply and reduce the demand for hard currencies, such as encouraging remittances from Nigerians abroad, tackling insecurity that hampers food production, and providing incentives for local industries to reduce imports.

He also stressed the need for long-term structural reforms to diversify the economy, improve governance, and enhance human capital development. He said that these would create a conducive environment for investment and growth, which would ultimately strengthen the naira.

Newsflash Nigeria is an online newspaper that is developed and written exclusively for Nigerians. It’s packed with up-to-the-minute Local and National Economy News, Share & Capital Market, Health, Sports, Education, Technology, Business and Opinions.

To make further advert enquiries or place an order, please contact us at [email protected] and +2348053316946 and WhatsApp number 08033546732