Escalating drug prices in Nigeria: Post-subsidy removal
By Abdullahi D. Hassan
Nigeria is described as the most populous black nation in the world, with over 200 million inhabitants, Africa’s biggest economy, and endowed with variant mineral deposits to improve the living standards of its citizens. Yet, the country is bedevilled by gross corruption. Poor governance, ethnic tension, and abject poverty threaten integrity and sovereignty.
Even though, in the past, Nigeria witnessed serial military rulers, The nation transitioned to democracy in 1999. Since then, Nigeria’s leadership has emerged; leaders have been elected from different platforms and regions. Thus, the problems lingered; most elections were marred by irregularities, political interference, and power tussles from one inch to the next.
The political parties adopt the concept of rotating power between the north and south to accommodate the plural ethno-religious groups in the country. After the two tenures of Muhammadu Buhari. Bola Tinubu was nominated by the All Progressive Congress (APC). Amidst serials of allegations labelled against him by the opposition to hinder his andidacy, The bulk of Nigerians were enthusiastic about the level of experiences and transformation built in Lagos from 1999 to 2032.
On May 29, a new Nigeria’s president, Bola, was sworn in. In his inauguration speech, he made a striking remark on Nigeria, mentioning, ‘Subsidy has gone, the controversial fuel subsidy scheme. Four decades of financial assistance were institutionalised in the 1970s by the government to minimise the excessive cost of fuel (Premium Motor Spirit) to consumers and affordability to average citizens. Within a week’s time, the prices of basic household items, transport fares, and electricity began to rise at a high pace. Thus, fuel subsidy is the direct government intervention for the common man that benefits directly, without an odd process. Subsequently, the price increment affects the pharmaceutical industry acutely.
In recent months, patients from economically deprived backgrounds with terminal illnesses and diseases have been on recommended drugs and life-support medications. They are exposed to the brunt of fuel subsidy removal principles. Patients with asthma, diabetes, cancer, hypertension, and sickle cell diseases find it hard to afford medications at exorbitant prices. Due to financial hardship, inflation, and 1000 per cent hikes in drug prices.
GlaxoSmithKline (GSK), a British pharmaceutical and biotechnological company, withdraws from Nigeria. After 51 years of operation, The pharmaceutical firm is known for producing effective drugs, anti-biotics, anti-asthma, anti-malaria, allergy relief, painkillers, pain cream, and nasal decongestion. According to the report by the International Centre for Investigative Reporting (ICIR), GlaxoSmithKline Consumer Nigeria faced a setback in sales of N7.75 billion ($9.83 million) from N14.8 billion last year. GlaxoSmithKline’s existence leads to a drug hike, patients being unable to have medication and an increase in fake drugs. Similarly, GSK faces challenges from the high cost of importation of active pharmaceutical ingredients (APIs), a lack of steady power supply, and the depreciation of the naira against the US dollar.
According to the National Bureau of Statistics (NBS), the value of pharmaceutical products imported into Nigeria rose by 68 per cent to N81.8 billion ($99.1 million) between July and September 2023. The reports revealed that most of the drugs were imported from China, India, the United States, France, and Germany.
From the price survey across the country, the drugs were selling: asthma inhalers from N4,000 ($4.86) to N12,000 ($14.57), hypertension drugs from N10,000 ($12.14) to N20,000 ($24.28), augmentin tablets from N6, 000 ($7.28) to N24, 000 ($29.14), and Glucophage from N3, 800 ($4.61) to N6, 200 ($7.53). The prices vary between cities and regions.
David Uja, 63, a retired army officer frail from prostate cancer, undergoes chemotherapy for two sessions. Each cost him $100. She said, “For almost two months. All the prescribed drugs I used have already expired. The little pension received from the government is not enough to buy medicines at a high price. The economy is bad for us; people battle deadly sickness.”
“After I complained to my doctor, who relocated to the UK, Thanks to him, he sent me an Orgovyx tablet via courier, an expensive drug over $400, said Mr David.
Dataphyte reports that in 2021, only three per cent of the Nigerian population will have health insurance. Despite the guidelines of the National Health Insurance Scheme (NHIS), it is mandatory for Nigeria to benefit from the insurance. Public servants have smooth access to it. An employer will contribute 10% of the monthly basic salary, while the employee contributes 5%. The insurance covers the contributor, spouse, and four biological children less than 18 years old. The current monthly minimum wage is $44.45. Technical non-government workers are denied access to health facilities and medication.
In October, the Central Bank of Nigeria lifted the ban on 43 items after 8 years to allow access to foreign exchange and import-listed goods in the country. Never, pharmaceuticals and medical essentials are excluded from the list.
Interestingly, oil is the mainstay of Nigeria’s economy. Even so, the country has remained poor, with its citizens living below the poverty line of $1 per day. Nigeria has been nearly six months without a fuel subsidy. The majority of Nigerians are unable to afford standard health service delivery. These led to fast and quick deaths among the vulnerable. Others reside in rural areas that lack the means to buy drugs at a high rate. Alternative to traditional medicines.
Therefore, deciding on traditional medicine, given its low cost of purchase, Such medicine lacks a scientific approach, and most traditional doctors determine the nature of an ailment by mere observation. Outwardly of any examination and sometimes depend on spiritual healings in order to detect the course of sickness. These have made life more difficult in a nation with a life expectancy of 53.87 years.
Abdullahi D. Hassan is a freelance journalist and writer from Abuja, Nigeria. His journalistic and literary pieces were published in Daily Trust, The Guardian, Triumph, Politics Today, The Daily Reality, and Kalahari Review.