Neimeth Pharmaceuticals Plc has called on the Federal Government to create pathways for pharmaceutical manufacturers to access long-term financing, saying the move is critical to sustaining investment in local drug production and reducing reliance on costly short-term funding.
Speaking at the company’s 2026 annual media briefing in Lagos, Managing Director of Neimeth Pharmaceuticals Plc, Valentine Okelu, said the structure of pharmaceutical manufacturing requires patient capital because of the long gestation period between facility development and actual production.
He explained that such timelines often discourage investors seeking quick returns, noting that many financiers prefer ventures with immediate yields rather than projects that require years before profitability.
According to him, what the industry needs is not grants but affordable, long-term funding that allows manufacturers complete construction and regulatory processes without being weighed down by heavy interest obligations before production begins.
Okelu commended previous intervention initiatives that supported segments of the sector and suggested that similar financing windows could be introduced through institutions such as the Central Bank of Nigeria and channelled via commercial banks at concessionary rates to support both expansion projects and new pharmaceutical ventures.
He disclosed that several firms in the industry are currently scaling up their production facilities while new investors are preparing to enter the market, stressing that although gaps still exist in the local production of complex medicines, Nigeria already possesses the capacity to manufacture many essential drugs required for routine healthcare.
The Neimeth boss, however, lamented that working capital constraints remain a major challenge, with some manufacturers forced to obtain loans at interest rates as high as 30 per cent to sustain operations.
He maintained that conventional commercial lending structures are not suited for long-term industrial financing and urged authorities to prioritise funding frameworks that would strengthen domestic pharmaceutical manufacturing and improve national health security.
