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Manufacturers fault govt over drug supply contract to Indians

Posted by By Babatola Adeyemi on 2006/07/27 | Views: 575 |

Manufacturers fault govt over drug supply contract to Indians


LOCAL drug manufacturers yesterday in Lagos accused the Federal Government of favouring their foreign counterparts through....

LOCAL drug manufacturers yesterday in Lagos accused the Federal Government of favouring their foreign counterparts through contract awards and products patronage.

They were reacting to a report of an award of a N2.5 billion contract to four Indian companies by the government for the supply of drugs and other consumables.

Acting under the aegis of the Pharmaceutical Manufacturers Group of the Manufacturers Association of Nigeria (PMG - MAN), the association's chairman, Mr. Joe Odumodu, said at a media briefing that a petition would be addressed to President Olusegun Obasanjo, his aide on manufacturing, and the Minister of Health, Professor Eyitayo Lambo, on the development.

Odumodu, who is also the managing director of May and Baker Nigeria Plc, decried the a situation where qualified local drug manufacturers were not given equal opportunity to compete for the contract being awarded by the Federal Government and its agencies.

"We are worried that some foreigners are getting undue grip on the economy through such practices and this goes against the principles of President Obasanjo's economic reform agenda," Odumodu said.

A national daily (not The Guardian) while reporting the contract awards last week, said that local drug producers were not given a fair opportunity to bid for them.

To PMG-MAN, the neglect of local competencies on drug supplies has grave economic and security implications.

Consequently, Odumodu said: "We shall not allow it to pass without the necessary reaction."

He said that government had failed to achieve most of its targets on public health.

According to him, "only 24 per cent is achieved in government's target of treating 250,000 People Living with HIV/AIDS (PLWHAS) while the Roll Black Malaria target of 60 per cent home treatment by 2005 was not achieved."

He also said that the President's directive to local firms to achieve 70 per cent production of essential drugs needs by 2007 was being jeopardised by government officials, just as he claimed that the disclosure, which was dubbed economic sabotage is being aided and abetted by senior government functionaries.

Insisting that government's resorts to the importation of ARVs was uncalled for, Odumodu said local manufacturers have the capacity to produce them.

"In response to the presidential initiative and target of sourcing 70 per cent drugs need locally, pharmaceutical manufacturers have made additional investments in Research and Development, technology acquisition, machinery, raw materials and products worth about N20 billion in the last three years. Indeed, we have proven to Nigerians our capacity and competence to meet the needs of the 17 banned Over The Counter (OTC) products.

Today, these products are not only readily available, but are being sold at affordable prices to the advantage of Nigerians.

"Local manufacturers deserve encouragement rather than developments like the reported drug supply contract which remain a matter of grave concern," Odumodu stated.

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