The Pharmaceutical Manufacturers Group of Nigeria has lamented the high cost of import duty and the high cost of operation in the country.
Speaking to newsmen on Saturday, the chairman of the Manufacturers Association of Nigeria sub-group, Oluwatosin Jolayemi said the high cost of medications is influenced due to the high cost of customs duty, cost of production, and inflation.
Jolayemi said that though the rising cost of drugs in the country is not new, the group is worried, stating that the Customs have decided to use the parallel market rate instead of the official market rate to judge duty rates.
Jolayemi said, “The PMGMAN is certainly concerned but the rising cost is not a new thing. The new thing is the regime that the custom has introduced now, apart from the dollars sliding.
“The Customs decide to use the parallel market rate as their rate of judging duty instead of using the official market rate. Apart from the indiscretional use of picking of HS-Code which increases the duty on each of the products.
“So, we are facing different battles in the industry apart from the dollar uncertainty, we are fighting the battle of duty indiscretion, we are fighting the high cost of operation when it comes to the cost of power; all these costs will certainly increase the cost of production and cost of medication.”
Jolayemi noted that operation funds are being eroded by the devaluation of the naira and urged the Federal Government to consider giving about a forty percent rebate on every calculated duty, which would provide relief in the import duty.
Jolayemi also added that there is a need for political will to improve medicine security in the country.
Join our twitter community :