Industry Trend Analysis - A Large Yet Challenging Pharmaceutical Market - JAN 2018
BMI View : The Nigerian pharmaceutical and healthcare industry is underdeveloped by global standards and remains heavily dependent on imports to supply inputs for manufacturing and to meet the local medicine demand. We expect that domestic drugmakers' performance will improve in line with increasing government support, although the benefits are unlikely to be realised over the near-term. The majority of multinational drugmakers will continue to opt for an indirect presence as the business climate remains decidedly difficult in Nigeria.
Nigeria's low per capita pharmaceutical expenditure limits the opportunities for innovative drugmakers, reflected in its score of 22.1 in BMI's Innovative Pharmaceuticals Risk/Reward index. While the country's overall market size is significant, operational and political risks are elevated, dissuading foreign investment, while the regulatory environment is also highly challenging with a lack of patent respect.
This article is part of our Middle East & Africa coverage. To access this article subscribe now or sign up for free trial