Nigerian drug makers say power costs swallow 40 percent of revenue

Nigerian pharmaceutical manufacturers are spending more than 40 percent of revenue on electricity and alternative power generation, the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria said on 14 August, warning that the burden is undermining the drive for medicine security.
PMG-MAN Executive Secretary Frank Muonemeh said the figure compares with under 10 percent for competitors in China and India. He asked the federal government for a dedicated industrial energy tariff for pharmaceutical plants, stronger policy support for local active pharmaceutical ingredient production, faster clearance of pharmaceutical raw materials, and an extension of the Presidential Executive Order on local manufacturing from two years to five.
The group said pharmaceutical imports fell from 4.03 billion units to 1.13 billion units in 2025, and that the sector has grown from 20 manufacturing companies in 1983 to more than 200 today. Patrick Ajah of May and Baker Nigeria, who chairs the industry exhibition planning committee, reaffirmed the sector target of 70 percent local production.
Why it matters: Energy cost, not demand, is now the binding constraint on Nigerian medicine production and on the price patients pay at the counter.
Source: Vanguard, 14 August 2026 https://www.vanguardngr.com/2026/08/40-revenue-goes-to-power-pharma-manufacturers-tell-fg/



