The National Agency for Food and Drug Administration and Control (NAFDAC) has said its ‘5 Plus 5’ policy and Ceiling List initiative have contributed to a 25 per cent increase in local pharmaceutical manufacturing, as the number of pharmaceutical companies in Nigeria rose from 174 to 190.
The Director-General of NAFDAC, Prof. Mojisola Adeyeye, disclosed this at the Lagos Chamber of Commerce and Industry (LCCI) Invest in Nigeria Conference and Expo 4.0, where she urged investors from more than 43 countries to take advantage of Nigeria’s evolving regulatory framework.
Adeyeye explained that the ‘5 Plus 5’ policy, introduced in 2019, was designed to phase out the importation of selected medicines that local manufacturers have the capacity to produce.
Under the policy, she said, affected products can only be manufactured locally, while stakeholders are required to establish production facilities or engage qualified local manufacturers through contract manufacturing arrangements.
She added that the Ceiling List initiative had expanded the number of products restricted from importation from nine in 2020 to 36, further encouraging domestic production.
According to the DG, the two initiatives have also increased facility layout submissions and approvals for pharmaceutical and medical device companies, reflecting growing investor confidence in the sector.
She said that as of June 2026, NAFDAC had reviewed and approved layouts for 176 pharmaceutical companies, comprising 70 existing and 106 new companies.
Adeyeye said the shift towards local production had contributed to a 70 per cent reduction in the importation of drug products covered by the two initiatives.
She added that the ratio of imported to locally manufactured pharmaceutical products had improved from 70:30 in 2019 to 50:50 in 2025.
The NAFDAC boss also disclosed that the number of companies engaged in contract manufacturing had increased from 10 in 2019 to 87 in 2026.
She said the development was helping to reduce reliance on international supply chains while expanding domestic production capacity.
“The rise in contract manufacturing reflects a strategic move toward sustainable and scalable local operations,” Adeyeye said.
She explained that existing facilities were undergoing retrofitting and upgrades to meet current Good Manufacturing Practice (cGMP) standards.
According to her, 37 existing manufacturers are currently undergoing construction and upgrades, while 28 have completed construction and are operational.
Adeyeye further disclosed that the sector had recorded increased foreign investment, particularly in medical devices, with international investors entering joint ventures with Nigerian firms to establish local manufacturing facilities.
She said there had also been increased technology transfer of formulations for which local manufacturing capacity exists.
The DG stated that 16 new pharmaceutical manufacturers and six new medical device and in-vitro diagnostics (IVDs) manufacturers had emerged.
She noted that the new facilities were aligning with regulatory requirements, including the installation of heating, ventilation and air-conditioning (HVAC) systems and other critical infrastructure.
Adeyeye attributed the overall impact of the ‘5 Plus 5’ and Ceiling List initiatives to 28 newly developed and retrofitted companies and 16 new facilities, bringing the total to 44 and resulting in a 25 per cent increase in local manufacturing.
She also disclosed that NAFDAC was implementing a Global Listing Re-evaluation strategy in the food and cosmetics sectors to identify products that could be manufactured locally and encourage domestic production.
The DG said the agency would continue to provide regulatory support through handholding and Corrective Action and Preventive Action (CAPA) clinics.
She urged stakeholders to collaborate with NAFDAC in implementing local manufacturing policies and regulatory directives.
Adeyeye said the Federal Government’s Executive Order 2024, which provides zero tariffs, excise duties and Value-Added Tax (VAT) on imported machinery, equipment and raw materials for local healthcare manufacturing, had further boosted the industry.
“The increase in local manufacturing is in tandem with the Executive Order of the Federal Government. We should embrace it,” she said.
Comment here