The Study of the Key Challenges Facing Pharmaceutical Manufacturing Industry in Lagos, Nigeria, With Emphasis on Cost and Access to Quality Raw Material

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Olatokunbo, Ojo Nathaniel
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The Nigerian pharmaceutical manufacturing industry is very important to the economy of Nigeria. From empirical research already done on the Nigerian pharmaceutical industry, it was gathered that several challenges drag the development of the sector. This gave good understanding about this work which aims to study the challenges facing the pharmaceutical manufacturing industry in Lagos, Nigeria with emphasis on cost and access to quality raw materials. Considerably, 25% of the pharmaceutical products required by Nigerians are locally delivered by Nigeria’s pharmaceutical industry. The excess 75% are imported from other developed nations like UK, India and China (WHO/PQT, 2014). The Research Onion proposed by Saunders and his colleagues Lewis and Thornhill in 2009 forms the bases and provides the structure for the research process used in this study. Central in the context of this dissertation is the research philosophy of interpretivism. The research approach was deductive and aimed to collect data and build a theory based on the results (Saunders, Lewis and Thornhill, 2009). A case study strategy was used to properly understand the challenges especially in the area of cost and access to quality raw materials, facing the four pharmaceutical manufacturing firms employed in this study. A mono method research choice (only qualitative research strategy) was adopted for the collection of data. Then data were collected and analysed into themes which assisted in the overall research findings. The results from this study on the accessibility of raw material reveal that all the pharmaceutical firms in Nigeria rely heavily on the importation of raw materials. On the affordability of quality raw materials, all data collected pointed to the fact that the prices of quality materials are becoming increasingly expensive and unaffordable. On the impact of accessibility to quality raw materials on the production capacity, this study revealed that accessibility to quality materials dramatically influences the production capability of pharmaceutical firms in Nigeria. Lastly, on the impact of cost of quality raw materials on the production capacity, this study revealed that the cost of the materials is prohibitive.

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