Drugmakers channel N29bn into factories, machinery to boost production

Detailed summary

Nigeria’s five listed pharmaceutical manufacturers increased capital expenditure by 81 percent to N29.26 billion in the first nine ...

Nigeria’s five listed pharmaceutical manufacturers increased capital expenditure by 81 percent to N29.26 billion in the first nine months of 2026, as companies ramp up investment in factories, machinery and production infrastructure amid government efforts to deepen domestic drug manufacturing and reduce dependence on imports.

The manufacturers — Fidson Healthcare, May & Baker Nigeria, MeCure Industries, Morrison Industries and Neimeth International Pharmaceuticals — spent a combined N29.26 billion on capital projects between January and September 2026, compared with N16.20 billion in the corresponding period of 2025, according to their financial disclosures.

The increase represents the highest nine-month capital expenditure by the five companies in the four years examined. Their combined spending rose from approximately N10.05 billion in 9M 2023 to N17.40 billion in 9M 2024, before moderating to N16.20 billion in 9M 2025.

The renewed acceleration comes as Nigeria’s pharmaceutical industry faces growing pressure to strengthen domestic production, improve manufacturing standards and build capacity to meet demand previously met largely by imported medicines.

The scale of spending is also increasing relative to the companies’ business size. Their combined revenue rose by 17.2 percent to N220.27 billion in the nine months to September 2026 from N187.98 billion a year earlier, while capital expenditure increased from 8.6 percent to 13.3 percent of combined revenue.

MeCure accounted for the largest share of the investment, committing N16.69 billion to capital expenditure, up 66 percent from N10.05 billion in the corresponding period last year. Fidson followed with N9.97 billion, almost double its previous N5.06 billion, while May & Baker increased spending by 102 percent to N2.04 billion from N1.01 billion.

Neimeth’s capital expenditure increased to N541 million from N69 million, while Morrison recorded expenditure of N14 million, compared with a net inflow of N9 million in…

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