To accelerate the country’s assault against the COVID-1 pandemic, and kick the deadly virus out of Nigeria’s shores, the federal government needs to make special allocation of foreign exchange for the healthcare and pharmaceutical industry.
Secondly, the administration must help pharmacists and pharmaceutical companies to speedily access the N100 billion facility approved for the purpose by the Central Bank of Nigeria, CBN.
The Pharmaceutical Society of Nigeria, PSN, made these declarations/appeals in a statement issued by its President, Mazi Sam Ohuabunwa, in Lagos on Monday.
Ohuabunwa, a fellow of the PSN and former chairman/CEO of Neimeth International Pharmaceutical Plc, said although the society was happy that some Healthcare/Pharmaceutical Companies that applied for the special N100 billion CBN facility had been granted, the society was, however, distressed that the majority of the applicants were yet to be successful.
“We are, therefore, asking for the expedition of the review and approval of many of the outstanding applications so that the overall impact on industrial capacity, capability and output will be significantly enhanced in line with the noble objectives of the facility, especially as COVID-19 pandemic subsists and the need for self-sufficiency in local drug production persists,” said Ohuabunwa who marked his 70th birthday with panache last Sunday.
“Again, the feedback we receive is that many of the beneficiary companies are experiencing tremendous difficulties in accessing foreign exchange to pay for the machinery and equipment in order. Many are compelled to source forex from sundry sources at much higher rates than the official CBN rate. The impact of this portends grave danger and may undermine the noble objectives.
“First, the longer it takes to get the machines and equipment in, the longer it will be for Nigeria to begin to see an enhanced local production. Second, the longer it takes, the more difficult it will be for the benefiting companies to begin production and generate cash flow to meet the interest and repayment obligation, as the moratorium is fast depleting. Third is that with forex at rates higher than the planned or forecast rates in the business plan, the money received in Naira may no longer be sufficient to meet the stated needs. And fourth is that the longer the naira is left in the banks awaiting piecemeal allocation of forex, the faster the value depreciates by growing inflation and the fewer the number of machinery and equipment or even raw materials that can be bought. All these will put an additional burden on the beneficiary companies when it comes to servicing the loans in a timeous manner.”
The PSN and its President did not just complain and decry the difficulties being encountered by pharmaceutical companies in accessing the CBN facility, they also recommended measures to forestall a future recurrence.
“It is because of the foregoing and to preempt any future problems with prompt servicing of the loans that we make this special appeal to the CBN to consider making the special and dedicated allocation of foreign exchange to the beneficiary companies so that they can procure their machinery/equipment and raw materials in a timely manner,” Ohuabunwa continued.
This, he said, was necessary to harvest the “beneficial effect of this noble program can be quickly realized and repayment made as and at when due so that the CBN will be encouraged to do more for the pharmaceutical industry and also to other sectors of the economy.”
Ohuabunwa and the PSN played Oliver Twist and pushed for more. They wanted the loans granted in two currencies: foreign currency for the purchase of equipment; and local currency for local purchase since the beneficiaries would have provided relevant information in their applications and business plans. “This,” Ohuabunwa posited, “would have obviated the current challenges being faced by the beneficiary companies.”
The statement concluded: “Given the current and well-acclaimed responsiveness of our CBN leadership, it’s our hope that the CBN will accede to our request and help the industry to quickly optimize this earnestly prayed- for and long-awaited LIFELINE.”