The National Agency for Food and Drug Administration and Control, NAFDAC, on Sunday disclosed that its 5+5 policy and Ceiling List initiative have triggered a major shift in Nigeria’s pharmaceutical industry, cutting imports of affected medicines by 70 per cent and raising the ratio of locally manufactured pharmaceutical products from 30 per cent to 50 per cent.
The Director-General of NAFDAC, Prof. Mojisola Adeyeye, who disclosed this at the Lagos Chamber of Commerce and Industry, LCCI, Invest in Nigeria Conference and Expo 4.0, said the regulatory measures had also stimulated new investments, contract manufacturing and expansion of existing production facilities.
Adeyeye urged foreign investors from more than 43 countries represented at the conference to take advantage of the changing regulatory environment and the incentives provided by the Federal Government to establish manufacturing operations in Nigeria.
She said the number of pharmaceutical manufacturing companies in the country had increased from 174 to 190, while a total of 176 pharmaceutical companies had undergone layout review and approval by NAFDAC as of June 2026.
According to her, 70 of the companies were existing manufacturers while 106 were new companies, a development she described as evidence of growing investor confidence in local pharmaceutical production.
“The increase in local manufacturing is in tandem with the Executive Order of the Federal Government. We should embrace it,” Adeyeye said.
The NAFDAC boss explained that the 5+5 policy, introduced in 2019, was designed to phase out the importation of selected medicines that could be produced locally.
She said products selected through scientific surveys and critical analysis were restricted from importation where local manufacturers had demonstrated the capacity to produce them.
“Stakeholders are required to set up facilities locally or go into contract manufacturing with existing suitably qualified local manufacturers,” she said.
Adeyeye said the Ceiling List had further expanded the scope of products restricted from importation, increasing the number from nine in 2020 to 36.
She said the two initiatives, combined with other government interventions, had contributed to a significant reduction in import dependence, particularly for products covered by the policies.
“Specifically, importation of drug products in these two categories decreased by 70 per cent,” she said.
The shift, according to her, is also reflected in the import-to-local production ratio, which moved from 70:30 in 2019 to 50:50 in 2025.
Beyond direct manufacturing, Adeyeye said the policies had encouraged a dramatic expansion of contract manufacturing arrangements, with the number of companies involved rising from 10 in 2019 to 87 in 2026.
“The rise in contract manufacturing reflects a strategic move toward sustainable and scalable local operations,” she said.
She explained that the arrangement allowed companies without their own manufacturing plants to utilise idle capacity in qualified local facilities, thereby reducing dependence on international supply chains.
To qualify as a contract manufacturer, she said, a facility must meet stringent regulatory requirements and have sufficient idle capacity to manufacture products for contract givers.
Adeyeye also disclosed that 37 existing manufacturing facilities were undergoing construction and upgrading, while 28 existing manufacturers had completed construction and commenced operations.
She attributed part of the growing investment to the Presidential Executive Order 2024, which provides zero tariffs, excise duties and Value-Added Tax, VAT, on imported machinery, equipment and raw materials for local healthcare manufacturing.
The NAFDAC DG said the medical devices sector had particularly attracted foreign investment, with international investors entering joint ventures with Nigerian companies to establish local production facilities.
She added that technology transfer, including formulations for which Nigeria already had production capacity, was also increasing.
According to her, 16 new pharmaceutical manufacturers and six new medical devices and in-vitro diagnostics, IVDs, manufacturers had emerged, with the new facilities increasingly aligning with regulatory requirements, including installation of heating, ventilation and air-conditioning, HVAC, systems and other critical infrastructure.
Adeyeye said the overall impact of the 5+5 and Ceiling List initiatives included 28 newly developed or retrofitted companies and 16 new facilities, representing 44 facilities and an estimated 25 per cent increase in local manufacturing.
She said NAFDAC was also extending the local manufacturing strategy beyond pharmaceuticals and medical devices through a Global Listing Re-evaluation initiative in the food and cosmetics sectors.
The objective, she explained, was to identify products that could be manufactured locally and create an enabling regulatory environment for domestic production.
Adeyeye assured manufacturers that NAFDAC would continue to provide regulatory support through handholding and Corrective Action and Preventive Action, CAPA, clinics to help companies address compliance gaps.
She stressed that the agency’s objective was not merely to restrict imports but to build a stronger domestic production base capable of improving Nigeria’s food and drug security.
“NAFDAC is committed to promoting local manufacturing in Nigeria to strengthen national food and drug security through market-friendly and innovation-driven regulatory directives,” she said.
The NAFDAC chief, however, urged manufacturers, investors and other stakeholders to continue collaborating with the agency to ensure the effective implementation of local manufacturing policies.
She said the emerging transformation provided an opportunity for investors to deepen their presence in Nigeria while contributing to the development of a more resilient pharmaceutical industry.
“Embrace it,” Adeyeye urged investors, stressing that the Federal Government’s policy direction and NAFDAC’s regulatory reforms were creating new opportunities for sustainable investment in Nigeria’s healthcare manufacturing sector.
