The National Agency for Food and Drug Administration and Control (NAFDAC) has stated that GlaxoSmithKline Pharmaceutical Company’s departure from Nigeria is not the cause of the recent increase in drug prices in the country.
Professor Mojisola Adeyeye, the Director-General of NAFDAC, made this statement in Lagos on Friday, addressing speculations that GSK’s exit had impacted drug prices in Nigeria.
It is worth noting that in August, GlaxoSmithKline, a British multinational pharmaceutical and biotechnology company, announced its intention to cease operations in Nigeria. The company had been operating in Nigeria for 51 years, having been incorporated in June 1971 and commencing business the following year.
Adeyeye explained, “The primary reason for the rise in drug prices is the depreciation of the value of the naira.”
She further clarified that even before GSK’s planned exit, the prices of various commodities had already increased, and some of the products produced by GSK had experienced price reductions.
From a regulatory standpoint, NAFDAC encourages local manufacturing, and GSK had collaborated with local manufacturers. Therefore, their operations weren’t solely reliant on imports.
Adeyeye also highlighted the significant impact of foreign exchange issues on multinational companies, noting that they often faced challenges repatriating funds back to their parent companies for further investments due to currency exchange restrictions.
