• Manufacturers rise from 174 to 190, contract production hits 87
The National Agency for Food and Drug Administration and Control (NAFDAC) has disclosed that the implementation of its 5+5 Policy and Ceiling List has reduced the importation of affected pharmaceutical products by 70 per cent.
The agency also said the measures had helped drive growth in local pharmaceutical manufacturing, with the number of pharmaceutical manufacturing companies in Nigeria rising from 174 to 190.
NAFDAC Director-General, Prof. Mojisola Adeyeye, disclosed this at the Lagos Chamber of Commerce and Industry (LCCI) Invest in Nigeria Conference and Expo 4.0.
Adeyeye urged foreign investors from more than 43 countries who attended the conference to take advantage of Nigeria’s evolving pharmaceutical regulatory framework and invest in local production.
She explained that NAFDAC introduced the 5+5 Policy in 2019 to gradually phase out the importation of selected medicines that local manufacturers have the capacity to produce.
Under the policy, she said, companies are expected to establish manufacturing facilities in Nigeria or enter into contract manufacturing arrangements with qualified local manufacturers.
Adeyeye said the Ceiling List had also expanded the number of selected products restricted from importation from nine in 2020 to 36.
According to her, the policies have triggered increased investment and facility development in the pharmaceutical and medical device sectors.
She disclosed that as of June 2026, 176 pharmaceutical companies had undergone facility-layout reviews and received approval from NAFDAC, comprising 70 existing companies and 106 new companies.
“The trend indicates a shift from importation to local production, reflecting growing industry confidence and investment,” she said.
Adeyeye said the ratio of imported to locally manufactured pharmaceutical products had consequently improved from 70:30 in 2019 to 50:50 in 2025.
She also attributed the growth to the Presidential Executive Order providing zero tariffs, excise duties and Value-Added Tax (VAT) on imported machinery, equipment and raw materials for local healthcare manufacturing.
The NAFDAC boss said contract manufacturing had witnessed significant growth, with the number of companies involved increasing from 10 in 2019 to 87 in 2026.
She said the development would help reduce Nigeria’s dependence on international supply chains while strengthening domestic production capacity.
Adeyeye explained that existing pharmaceutical facilities were undergoing retrofitting and upgrading to meet current Good Manufacturing Practice (cGMP) standards.
She disclosed that 37 existing manufacturers were currently undergoing construction and upgrading, while 28 others had completed construction and were already operational.
The NAFDAC DG further disclosed that 16 new pharmaceutical manufacturers and six new medical device and in-vitro diagnostics (IVD) manufacturers had emerged.
She said the new facilities were being developed in line with regulatory requirements, including the installation of heating, ventilation and air-conditioning (HVAC) systems and other critical infrastructure.
Adeyeye said the 5+5 Policy and Ceiling List had resulted in 28 newly developed and retrofitted companies and 16 new facilities, bringing the total to 44 and contributing to a 25 per cent increase in local manufacturing.
She also revealed that foreign investment was increasing, particularly in the medical devices sector, with international investors entering joint ventures with Nigerian companies to establish local manufacturing facilities.
According to her, technology transfer involving formulations that can be produced locally has also increased.
Adeyeye said NAFDAC would continue to support manufacturers through regulatory handholding and Corrective Action and Preventive Action (CAPA) clinics.
She disclosed that the agency was also developing a Global Listing Re-evaluation strategy for the food and cosmetics sectors to identify products that could be manufactured locally and encourage domestic production.
She urged stakeholders to cooperate with NAFDAC in implementing local manufacturing policies, stressing that the agency remained committed to strengthening Nigeria’s food and drug security through market-friendly and innovation-driven regulation.
Adeyeye also encouraged investors to take advantage of the incentives provided under President Bola Ahmed Tinubu’s Executive Order, saying the emerging growth in local manufacturing was consistent with the Federal Government’s policy direction.
