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‘5+5’ ceiling list drives local drug production – NAFDAC

The National Agency for Food and Drug Administration and Control (NAFDAC) has said that its “5 Plus 5” policy and Ceiling List initiative are transforming Nigeria’s pharmaceutical industry by boosting local production, attracting investment and reducing dependence on imported medicines.

NAFDAC Director-General, Prof. Mojisola Adeyeye, disclosed this at the Lagos Chamber of Commerce and Industry (LCCI) “Invest in Nigeria Conference and Expo 4.0,” where she urged investors from more than 43 countries to establish pharmaceutical manufacturing operations in Nigeria.

Adeyeye said the number of pharmaceutical manufacturing companies increased from 174 to 190, while the ratio of imported to locally manufactured pharmaceutical products improved from 70:30 in 2019 to 50:50 in 2025.

She explained that the “5+5” policy, introduced in 2019, gradually phases out imports of medicines that Nigerian manufacturers have the capacity to produce locally. Companies can either establish manufacturing facilities or engage qualified Nigerian manufacturers through contract manufacturing.

The Ceiling List has also expanded restrictions on selected imported products from nine in 2020 to 36, contributing to a 70 per cent decline in imports of products covered by the initiatives.

Contract manufacturing has equally grown significantly, with the number of companies involved rising from 10 in 2019 to 87 in 2026.

“The number of companies doing contract manufacturing jumped from 10 in 2019 to 87 in 2026,” Adeyeye said, describing the development as “a strategic move toward sustainable and scalable local operations.”

As of June 2026, NAFDAC had reviewed and approved layouts for 176 pharmaceutical companies, comprising 70 existing and 106 new companies. The Agency also reported 37 existing manufacturers undergoing construction or upgrading, while 28 had completed construction and become operational.

Adeyeye linked the expansion to the Federal Government’s 2024 Executive Order providing zero tariffs, excise duties and Value-Added Tax on imported machinery, equipment and raw materials for local healthcare manufacturing.

She said stronger domestic production would improve medicine availability, reduce vulnerability to global supply-chain disruptions and strengthen Nigeria’s ability to respond to health emergencies.

The Agency also reported the emergence of 16 new pharmaceutical manufacturers and six medical-device and in-vitro diagnostic manufacturers, alongside increased foreign investment and technology transfer through joint ventures.

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