National Agency for Food and Drug Administration and Control (NAFDAC) has disclosed that local pharmaceutical manufacturing in Nigeria has increased by 25 per cent following the implementation of its 5+5 policy and Ceiling List initiative.
The Director-General of NAFDAC, Prof. Mojisola Adeyeye, said the regulatory measures had also contributed to a shift in the ratio of imported to locally manufactured pharmaceutical products from 70:30 in 2019 to 50:50 in 2025.
Adeyeye disclosed this at the Lagos Chamber of Commerce and Industry (LCCI) organised Invest in Nigeria Conference and Expo 4.0, where she urged investors from more than 43 countries participating in the event to take advantage of the Federal Government’s reforms and invest in Nigeria’s pharmaceutical and medical device sectors.
She said the number of pharmaceutical manufacturing companies in the country had risen from 174 to 190, while 176 pharmaceutical companies had undergone facility layout reviews and approvals by NAFDAC as of June 2026.
According to her, 70 of the companies whose layouts were reviewed were existing manufacturers, while 106 were new companies, a development she said reflected growing confidence in local pharmaceutical production.
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 covered by the policy were prohibited from being imported into the country and could only be manufactured locally, with companies required either to establish manufacturing facilities or engage suitably qualified Nigerian manufacturers through contract manufacturing arrangements.
Adeyeye said the Ceiling List had further strengthened the policy by increasing the number of products restricted from importation from nine in 2020 to 36.
She said the two initiatives had resulted in a 70 per cent decline in the importation of drug products covered by the measures, while encouraging more companies to establish or expand manufacturing operations in Nigeria.
The NAFDAC DG also disclosed that the number of companies involved in contract manufacturing had risen sharply from 10 in 2019 to 87 in 2026.
She said the growth in contract manufacturing was helping companies utilise existing production capacity while reducing dependence on international supply chains.
‘The rise in contract manufacturing reflects a strategic move toward sustainable and scalable local operations,’ Adeyeye said.
She added that existing manufacturing facilities were undergoing retrofitting and upgrades to meet current Good Manufacturing Practice standards.
Adeyeye said 37 existing manufacturers were currently undertaking construction and upgrades, while 28 others had completed construction and commenced operations.
She also attributed part of the growing investment in the sector to the Presidential Executive Order providing zero tariffs, excise duties and Value Added Tax on imported machinery, equipment and raw materials for local healthcare manufacturing.
The NAFDAC boss said the government policy had provided additional incentives for investors and was contributing to the shift from dependence on imported medicines towards domestic production.
‘There has been a marked increase in foreign investment, particularly in the medical devices sector,’ she said, adding that international investors were entering joint ventures with Nigerian firms to establish local manufacturing facilities.
She said the country was also witnessing increased technology transfer of formulations for which local manufacturing capacity already existed.
Adeyeye disclosed that 16 new pharmaceutical manufacturers and six new medical device and in-vitro diagnostics manufacturers had emerged, with the new facilities aligning with regulatory requirements, including the installation of heating, ventilation and air-conditioning systems and other critical infrastructure.
She put the overall impact of the 5+5 policy and Ceiling List at 28 newly developed and retrofitted companies and 16 new facilities, totalling 44 companies and facilities and resulting in a 25 per cent increase in local manufacturing.
Adeyeye said NAFDAC would continue to support manufacturers through regulatory handholding and Corrective and Preventive Action clinics to help companies address compliance challenges.
She said the agency was also extending its local manufacturing strategy to the food and cosmetics sectors through Global Listing Re-evaluation, aimed at identifying products that could be manufactured locally and encouraging investment in their domestic production.
The NAFDAC DG urged stakeholders to collaborate with the agency in implementing the government’s local manufacturing policies, stressing that strengthening domestic production was critical to Nigeria’s food and drug security.
‘The increase in local manufacturing is in tandem with the Executive Order of the Federal Government. We should embrace it,’ she said.