Neimeth International Pharmaceuticals Plc has emphasised the urgent need for patient capital to drive sustainable growth in Nigeria’s pharmaceutical sector, citing high bank lending rates as a major obstacle to business expansion......CONTINUE READING THE ARTICLE FROM THE SOURCE>>>>>
Speaking at a media event in Lagos, Managing Director, Valentine Chinedu Okelu, warned that the rising cost of borrowing is limiting access to affordable financing, making it increasingly difficult for pharmaceutical companies to invest in infrastructure and scale operations.
He stressed that pharmaceutical manufacturing is highly capital-intensive and requires long-term financing solutions rather than short-term credit facilities with prohibitive interest rates.
He noted that patient capital, which refers to long-term investment with no expectation of immediate returns, is crucial for stabilizing and expanding the sector.
Okelu called on both the government and high-net-worth individuals to inject such capital into the industry to support sustainable growth and enhance local production capacity.
Beyond financing challenges, he highlighted infrastructure deficits, particularly the high cost of power and energy, as significant hurdles facing the industry.
According to him, rising operational costs are squeezing profit margins, making it difficult for companies to remain competitive, especially as consumers struggle with shrinking disposable income.
Recall that THE WHISTLER had reported that the company said that the construction of a state-of-the-art, WHO-compliant pharmaceutical manufacturing facility in Amawbia, Anambra State, is a move poised to enhance Africa’s healthcare industry and solidify Nigeria’s role as a key player in regional pharmaceutical production.
Okelu highlighted the significance of this project in advancing the company’s vision to be the leading innovative healthcare provider in Africa.
The new facility will serve as a centre of excellence for pharmaceutical research, development, manufacturing, and distribution. Upon completion, the plant will undergo certification by the World Health Organization (WHO) and other global regulatory agencies, ensuring its compliance with the highest industry standards.
“This facility is a major step in our strategic growth plan. It aligns with our commitment to boosting local pharmaceutical production and reducing dependence on imports. It also positions Neimeth to fully leverage the opportunities presented by the African Continental Free Trade Agreement (AfCFTA),” Okelu stated.