Operators in the Nigerian pharmaceutical industry have commended the Central Bank of Nigeria for prompt disbursement of the N100 billion Health Sector Intervention fund.
They also expressed the need for the CBN to look into the provision of foreign exchange for manufacturers and also grant a two year moratorium as against the one year that is stated in the guideline for accessing the facility.
Speaking in Lagos at a virtual conference organised by Finance Correspondents Association of Nigeria (FICAN), pharmaceutical industry stakeholders testified that many operators in the sector have accessed while others have received approvals for accessing the facility.
President of the Pharmaceutical Society of Nigeria ( PSN) Mr. Sam Ohuabunwa in his remarks appealed to CBN to make a special allocation for all those who are beneficiaries of this facility to be given foreign exchange (forex) to import what is needed to boost their capacity.
He also asked for elongation of the moratorium which is perhaps the easiest thing for CBN to do or reduce the rate.
According to him, instead of one-year moratorium, CBN can give a two- year moratorium and maybe extend the repayment further down the line.
Ohuabunwa said, “From the feedback we get from most of us that have accessed the loans, they have put the money into equipment and material because of the shortage of foreign exchange and indeed, many are running a risk of losing a substantial value of this money and are losing in two sides: inflation and depreciation of the naira.
“We are now looking to buy forex from the parallel markets and you know the rate at which parallel markets go.
So, inflation and depreciation are major threats to proper utilisation of the funds.
“We have also sent and issued requests to CBN to make a special forex provision for the pharmaceutical industry and other healthcare entrepreneurs who have taken advantage of this healthcare and pharmaceutical sector fund.
” We want CBN to provide forex directly for that arm. They should not allow the manufacturers to struggle with banks to look for forex because anything worth doing is worth doing well.”
On his part, the Chairman of the Pharmaceutical Sector of the Manufacturer Association of Nigeria (MAN) and Founder/ Chief Executive of Fidson Pharmaceuticals, Dr Fidelis Ayebae called for reversal of policies that could hamper the growth of the pharmaceutical industry and the manufacturing sector at large.
