Bangladesh and the Nigerian Pharmaceutical Sector
By Zaid Olayiwola Olanrewaju
The Covid-19 global pandemic which originated from Wuhan, China has brought to the fore a crisis in the logistics of global pharmaceutical drug procurement and supply chain.
This is well documented in the clashes between the USA vs. India, USA vs. German, and USA vs. Canada, “India lifts drug export ban after Trump threat” posted by Andrew Allen in Procurement, the official media outlet of Chartered Institute of Procurement & Supply (CIPS), April 8 2020 edition; “Germany tries to stop US from luring away firm seeking corona virus vaccine” stated in Reuters March 15 2020; and “The corona virus scare brings fresh tension between Canada and the U.S” writes D.M Shribman in the Los Angeles Times April 10 2020, notably, are among other international squabbles.
It has also exposed the dependency of developing world on the traditional pharmaceutical drug manufacturing nations. The non-availability of medical drugs in Nigeria during this ongoing pandemic either as a result of demand and supply or international politics will be catastrophic. Post-Covid, the pharmaceutical drug industry will change drastically like all other sectors. The manufacturing logistics and legal issues surrounding pharmaceutical drug security will become more complex.
In terms of nominal GDP, Bangladesh’s GDP is $173 billion which ranks 44th in the world, Nigeria’s GDP is $447 billion which ranks 28th in the world, India’s GDP is $3.3 trillion which ranks 5th in the world and Pakistan GDP is $284.2 which ranks 41th in the world according to IMF economic outlook October 2019.
In spite of being the poorest, Bangladesh has a lower infant mortality rate, much less open defecation, higher immunisation, and better gender indicators than most of the countries under comparison. The 2018 World Bank, life expectancy age (Bangladesh – 72, India- 69, Nigeria- 54 and Pakistan-67) and literacy rate (Bangladesh – 74%, India- 74%, Nigeria- 62% and Pakistan-59%) shows Bangladesh’s higher standard of living compared to these other countries.
On their website, Bangladesh Association of Pharmaceutical Industries (BAPI) and Directorate General of Drug Administration (DGDA) listed 257 licensed pharmaceutical manufacturers operating in the country and about 150 of these are regarded as functional.
The pharmaceutical industry in Bangladesh is one of the most developed industry sectors within the country. Pharmaceutical companies produce insulin, hormones, and cancer drugs among other products. The sector accounts for 97% of the total medicinal requirement of the local market and the exports of medicines around the globe, including Africa and Europe. Despite this current capacity, there is a plan to be more export focused. Bangladesh’s efficiency is a reflection of the nation’s larger economy driven by the strategic leadership propelling a large young tech driven population, innovation and incentives.
Like most developing nations, Bangladesh enjoys comparative advantage in the pharmaceutical sector, thanks to availability of cheap labour, cheap imported raw materials, abundance of skilled manpower and enabling business environment.
Like other developing nations, Bangladesh’s pharmaceutical sector imports major raw materials or APIs (active pharmaceutical ingredients) for producing medicines from China, Europe and the USA. As a consequence, between 90 to 95 per cent of the demand for APIs is sourced internationally.
The Bangladeshi government have allocated 200 acres of land for developing an API Industrial Park in Munshiganj district since a long time ago, but progress is delayed due to myriads of problems. Earlier this year, the Indian government set aside $1.2 billion to establish drugs parks and enable the country shift from the import of active pharmaceutical ingredients from China to local procurement of active ingredients.
In both countries expenses for APIs will reduce considerably and prices of medicines will also decline significantly if and when these parks go into operation. Meanwhile, there are no such initiatives in Nigeria a country with a market size of $5 billion.
Nigeria’s local production of pharmaceutical drug is plagued by dependence on importation of APIs (active pharmaceutical ingredients), lack of local capacity, foreign exchange conversion, counterfeiting and lack of a government enabled environment. In conclusion the pharmaceutical sector in Nigeria requires a policy review driven by competent leadership by academics at the universities, the National Institute for Pharmaceutical Research and Development, Raw Material Research and Development Council and professionals from within the pharmaceutical sector including pharmaceutical society of Nigeria.
Olanrewaju, a public affairs commentator, writes in from London, United Kingdom.
