Expert decries looming monopoly in foreign drugs distribution

APUBLIC policy expert, Valentine Achum has decried an emerging monopolistic trend in Nigeria’s pharmaceutical space as international drug manufacturers exit the country.

Achum warned that the multinational companies exiting the country are leaving the distribution of their products in the hands of foreign- run distributors, who are replacing the entire networks of indigenous distributors in the value chain.

Speaking in Lagos, he cited multinationals such as Glaxosmithkline ( GSK), which announced plans to discontinue operations in Nigeria, in August 2023, ending its 51- year existence in the country.

Achum said: “When multinationals like GSK and Sanofi left, they opted for a distributor- led approach to the sale of their products in the country.”

He said by doing that, they may create a major problem for consumers if the relevant authorities like the National Agency for Food and Drug Administration ( NAFDAC) and Federal Competition and Consumers Protection Commission ( FCCPC) do not act to protect Nigerians.

He cautioned that “What is being observed is that these companies may end up fostering upon us, monopolies that are foreign- owned, with the attendant effect.

“By monopolising distribution channels, these companies will not only dictate prices but also wield disproportionate influence over the availability and accessibility of essential medications, further imperiling the health and well- being of Nigerians.”

Achum stressed that the ownership of such a significant asset by a foreign- owned entity raises concerns about the country’s drug security. “With critical decisions regarding pharmaceutical access and availability resting in the hands of foreign interests, the primary consideration shifts away from the welfare of Nigerians to making a profit, thereby posing a significant risk to national health security,” he said.