The Director-General of the National Agency for Food and Drug Administration and Control, Prof. Mojisola Adeyeye, has dispelled rumors linking the exit of GlaxoSmithKline pharmaceutical company to the recent increase in drug prices in the country.
Addressing these speculations in Lagos on Friday, Adeyeye emphasized that the rise in drug prices is primarily attributable to the depreciation of the Nigerian Naira and other market factors. She provided insights into the factors at play.
“The first reason for the increment in the prices of drugs is that the value of the Naira has depreciated,” Adeyeye explained.”
She pointed out that even before GSK announced its planned exit from the country, the prices of various commodities had been increasing.
Additionally, she noted that some of the products previously produced by GSK had decreased in demand.
From a regulatory perspective, Adeyeye underscored NAFDAC’s commitment to encouraging local manufacturing. She highlighted that GSK had collaborated with local manufacturers, reducing reliance on imported goods.
However, she acknowledged the challenges faced by multinational companies related to foreign exchange.
“The issue of foreign exchange is significant for some of the multinational companies,” Adeyeye noted. She explained that these companies generate funds within Nigeria, and repatriating those funds to their parent companies abroad can be complex, particularly when considering other investments and developments happening globally.
GSK, a British multinational pharmaceutical and biotechnology company, announced its plans to shut down its operations in Nigeria in August.
The company had a history of 51 years of operation in the country, having been incorporated in June 1971 and commencing business the following year.
