May & Baker Calls On Government To Settle Drug Manufacturers

May & Baker Nigeria Plc has called on the Federal Government to ensure consistent payment to local drug manufacturers under its pooled procurement initiative, cautioning that delayed payments could lead to financial losses and potential business collapse within the pharmaceutical sector.

Speaking at the company’s 2025 Walk for Life event in Lagos, held to commemorate World Hypertension Day, Managing Director and CEO Patrick Ajah, who also serves on the government’s pooled procurement committee, praised the initiative for its potential to lower drug costs but stressed the need for timely financial support to sustain the program.

“My warning is, as with many other things that the Federal Government has done, there should be consistency,” Ajah said. “It costs money to produce these drugs. When you make us come down on price, it means we’re compromising our profits.”

Ajah revealed that May & Baker, along with other pharmaceutical firms, had previously engaged in similar government-led procurement schemes but faced significant financial losses due to prolonged payment delays.

“On several occasions, we have been burned by non-payment. Some of these debts have been outstanding for as long as five years,” he said.

He warned that if the government fails to clear these overdue payments, it could discourage local pharmaceutical companies from participating in future pooled procurement initiatives, undermining the program’s intended benefits.

“We need assurance that if we get into this, the government is going to pay because companies are going down. Many companies have collapsed in recent times. It’s not good.”

He also called on the government to support local manufacturers to reduce dependence on imported drugs, adding that the current economic realities demand stronger local capacity.

“We need to increase capacity for local companies to take care of our people instead of depending on foreign companies. But if you do not encourage the local companies, it’s not gonna work,” he said.

Ajah praised the recent executive order that waived import duties on raw materials for drug production, describing it as a step in the right direction.

He explained: “One of the things that they have done recently… The executive order on custom duties and all of that for medications, raw materials, and local producers has been waived by the government. It’s fantastic, and it needs to be continued.”

Speaking about the health awareness walk, Ajah explained that the event is part of May & Baker’s wellness strategy for its employees and serves as a way to encourage regular health screenings among Nigerians, particularly those aged 40 and above.

“Anyone over 40 should get checked. Personal health history and family history are all very important,” he emphasized.

“Each time we do exercises like this, you’ll see a tick in the number of people doing checks, the number of people going to hospitals,” the May & Baker boss asserted.

“For our client base, we’re likely going to see at least two per cent of people showing up to check their blood pressure, and that could translate to the number of requests that we’ll get.”

Ajah reiterated May & Baker’s dedication to organizing the walk every year as a way to increase public awareness about the importance of preventive health care.