Market Overview

However, in May 2022, the National Government of Nigeria signed a new National Health Insurance Act which mandates health insurance for workers and all Nigerians. As this is introduced over the next few years, there will be significant changes in the ways medicines are used and acquired.

Medicines supply in Nigeria is available through 9,000 hospitals and clinics, 4,500 pharmacies and the estimated 100,000 Patent and Proprietary Medicine Vendors (PPMVs). These are licensed to sell over-the-counter medicines, but are the main source of medicines for much of the population. The online pharmacy business is also starting to take off.

Analgesics, antirheumatics and antipyretics account for 25 per cent of the local industry, with antibiotics and ant-infectives, multivitamins and tonics, and antimalarials each accounting for around 15 per cent. In addition to malaria, HIV is another significant health condition in Nigeria. Quality of medicines has been a concern with counterfeits/unlicensed products accounting for a major part of the medicines in the marketplace. This is being addressed by initiatives including more stringent registration, compliance and documentation as well as the use of technologies such as RFID and track and trace to help ensure integrity of supply.

Distribution and wholesaling is also getting better organised with a national representative body having been established in 2021. However, historically there has been a fractured import and supply chain with hundreds of small businesses across Nigeria doing much of this work, although the national chains are building in strength.

One important aspect to consider about the Nigerian pharma market is the population is seeing strong growth. The current estimate of 220 million is expected to reach 262 million by 2030, and become the planet’s fifth largest population of 400 million by 2050.