Capacity Utilization in Pharmaceutical Industry in Nigeria

Joshua Ikoni Ogaji,Anthony Olaniyi Alawode

doi:10.4172/2167-7689.1000121

Joshua Ikoni Ogaji, Anthony Olaniyi Alawode

Open Access

https://doi.org/10.4172/2167-7689.1000121

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Abstract

The performance of any enterprise is influenced by the environment in which it is located. The last two decades has witnessed the pre and post democratic governance in Nigeria as well as a number of government initiatives aimed at addressing some challenges facing the health delivery system of the country. The purpose of this paper was to study the capacity utilization of the pharmaceutical industry in the last twenty years to understand the association or otherwise with some government initiatives. A survey of the scientific work force and the capacity utilization in the industry was carried out. Interviews were held with individual to gain more insight in the activities of the industry during the period. The study showed that the capacity utilization of the pharmaceutical industry increased steadily but marginally. There was reason to believe that the marginal increment in the capacity utilization was influenced by the government policies and initiatives but the local industry is yet to be able to meet substantial essential drug needs of the country. Improvement in the internal controls and management by the industry along with sustained support and provision of infrastructures by the government would help to improve the capacity utilization in the pharmaceutical industry.

Highlights

Nigeria is a relatively large country with an estimated population of 169 million and it is endowed with natural resources, high levels of human and social capital
It was probable that new requirements for manufacture and advertisements of drugs being introduced by NAFDAC were yet to be understood and complied with by the manufacturers.Generally, capacity utilization of 70-75% is required for a sector to experience productivity growth [8]
It seems that factors other than lack of patronage from the government ministries, departments and agencies as claimed by some manufacturers may be responsible for the inability of the pharmaceutical industry to at least 60% the essential drug needs of the country [9]

Summary

Introduction

Nigeria is a relatively large country with an estimated population of 169 million and it is endowed with natural resources, high levels of human and social capital. It is plagued with a very high incidence of disease, poverty and malnutrition and has lower life expectancy than some other African countries of comparable economy (WHO, 2013). In realization of key role the availability of essential drug plays in health system, the government of Nigeria has made more efforts in empowering the pharmaceutical industry in the last two decades than was ever made in the history of the country (Table 1). A number of essential drugs that the local manufacturing industry has the capacity to produce have been put on import prohibition list to encourage the local manufacture and improve on the capacity utilization of sector (NCS, 2014)

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