Neimeth Pharmaceuticals Plc has urged the Federal Government to facilitate access to patient capital for pharmaceutical manufacturers, thereby enhancing sustained investment in local drug production and reducing the sector’s dependence on short-term financing.
At the company’s 2026 yearly media press briefing held in Lagos at the weekend, the managing director of the company, Valentine Okelu, argued that the nature of the industry requires long-term financing structures that differ significantly from conventional business models.
He pointed out that pharmaceutical manufacturing involves a lengthy gestation period from the commencement of investment in production facilities to the point of actual output, making it unattractive to short-term investors who seek quick returns.
Okelu also noted that many private investors are reluctant to commit funds to such long-term projects when alternative opportunities promise immediate yields.
According to him, what the sector requires is patient capital that allows manufacturers to complete construction and regulatory processes without the burden of heavy interest payments before production begins.
He categorically stated that the industry is not seeking grants but affordable, long-term funding that accommodates the unique timeline of pharmaceutical manufacturing.
He applauded previous government intervention funds that supported parts of the sector while suggesting that similar funds could be mobilised through the Central Bank of Nigeria or other government-backed mechanisms and channelled through commercial banks at concessionary rates to support ongoing and new pharmaceutical projects.
Okelu observed that several pharmaceutical firms are currently expanding their facilities, while new entrants are also preparing to commence operations.
He said that although gaps remain in the local production of more complex pharmaceutical products, Nigeria already has sufficient capacity to manufacture many essential medicines required for everyday healthcare.
However, he stressed that the sector continues to grapple with working capital challenges, with many manufacturers resorting to expensive borrowing, sometimes at rates as high as 30 per cent, to sustain operations.
He maintained that long-term industrial financing cannot realistically come from conventional commercial banking structures and called on the government to prioritise this area of intervention to strengthen local drug manufacturing and enhance national health security.
Guardian
