•Eyes drug production factory by 2027

By Elizabeth Adegbesan

Experts in the Pharmaceutical industry have urged the Central Bank of Nigeria, CBN, to reduce the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) to 10 percent from its current 32.5 percent.

They said  this will help increase liquidity of DMBs and encourage more lending to the manufacturing sector.

They made this call at the St. Rachael’s  Pharmaceutical Finance Forum in Lagos.

Speaking at the event, Chairman, St. Rachael’s Pharmaceutical Nigeria Limited, Dr. Akinjide Adeosun noted that 40 percent of pharmaceuticals are manufactured in Nigeria while 60 percent  are imported adding that by 2027 the company plan to launch a pharmaceutical manufacturing plant in Nigeria.

He added: “We can establish a world class pharmaceutical. We need to have long tenor long moratorial loans with single digit interest rates. That is the only way we can.

“ I urge the CBN to reduce the CRR for the DMBs from 32.5 percent to 10 percent because if you don’t, commercial banks will not be able to lend.”

On his part, the Chief Executive Officer, PBR Life Sciences, Dr. Ayodeji Alaran, disclosed that the challenges that bedeviled pharmaceutical manufacturing companies in 2022 include125 percent increase in energy cost, energy cost-to-revenue ratio of 4.0 per cent.

He also stressed those pharmaceutical manufacturing companies were also challenged by low profitability with  18 percent profit before tax (PBT),   5.0 percent Profit After Tax (PAT)  compared to banks average PBT and PAT of   38 percent and   31 percent respectively.”