Nigeria’s Localisation Drive: What It Means for API Suppliers

Nigeria is trying to make more of its own medicines, and the numbers reported this year are large. NAFDAC says imports of products covered by its localisation measures fell by 70%, and the number of local manufacturers has grown. For anyone who sells active pharmaceutical ingredients into the country, the question is what Nigeria API imports local manufacturing policy means in practice. The short answer is that the reported gains are in finished medicines, and local plants still rely on imported ingredients. This guide sets out what was reported, what was not, and how API suppliers can respond.

This is a plain-English summary of Nigerian press reports and NAFDAC figures as quoted by them. It is not legal or regulatory advice. We did not find official rules on API imports in the sources we reviewed.

The Quick Answer

• What was reported: In September 2026, Brand Spur, citing NAFDAC’s Director General, reported that imports of products covered by localisation measures fell 70%, and that local pharmaceutical manufacturers rose from 174 to 190.
• What it covers: Finished medicines. The article did not report API import or production figures.
• What it does not say: It does not describe a ban on APIs, and we found no report of an API shortage.
• Why APIs still matter: Nigerian manufacturers, industry groups and press reports describe heavy reliance on imported raw materials and APIs, and industry is asking for more support for local API production.
• What to do: Treat Nigeria as a market where buyers are shifting from importing finished products to making them, which can change who buys APIs and what they ask for.

What Was Reported

According to Brand Spur (September 24, 2026), citing NAFDAC Director General Prof. Mojisola Adeyeye:

A separate report, quoting NAFDAC data, said imported finished pharmaceuticals fell from 4.03 billion units to 1.13 billion units as of 2025. That also describes finished products, not APIs.

The Policies Behind the Numbers

Two NAFDAC measures are named in the coverage:

• The “5 Plus 5” policy (introduced 2019). For selected imported medicines where Nigerian manufacturers have shown capacity, importers are encouraged to build local plants or use qualified local manufacturers through contract manufacturing.
• The Ceiling List. It restricts imports of products that can be made locally. Brand Spur says it grew from 9 products in 2020 to 36, and includes products containing amoxicillin, amlodipine and albendazole. An earlier report gave a different count, so check the current list with NAFDAC.

BusinessDay (April 27, 2026) also reported that, as part of a 2026 fiscal policy shift, the government banned imports of several common drugs from non-ECOWAS countries, with named examples including paracetamol, metronidazole and penicillin. We could not confirm the details against an official notice, so verify the current position before relying on it. The same report quoted experts warning of short-term shortages and price rises for some finished medicines, such as anti-malarials and paracetamol. That is a warning about finished products, not APIs.

Nigeria API Imports Local Manufacturing: Why Local Plants Still Need Imported APIs

Making a tablet locally is not the same as making its API locally. Several sources point the same way:

• BusinessDay reported that raw materials remain largely imported, so local production still depends on foreign inputs.
• An executive of a Nigerian manufacturer said the Presidential Executive Order covers only about 5% of the APIs and specialised excipients that local manufacturers need, and asked for wider tax relief for domestic production of pharmaceutical raw materials.
• The Pharmaceutical Manufacturers Group of MAN has asked the government to strengthen policies supporting domestic API production and to extend the Executive Order from two years to five.
• The same group named delayed clearance of pharma inputs as a threat to local competitiveness.
• Local manufacturers reportedly spend more than 40% of revenue on electricity and alternative power, against under 10% for competitors in China and India, according to that group. Energy cost is one reason API production in Nigeria is harder to build.
• Brand Spur says the Nigerian Investment Promotion Commission identifies APIs as an import-substitution opportunity.

The reasonable reading is that finished-product imports are being replaced faster than API imports can be. That is an inference from these reports, not a statement from any of them, and it could change if local API investment grows.

What We Do Not Know

Be careful with claims you may see elsewhere:

• No confirmed API import rules. The sources we reviewed do not describe new restrictions on API imports or on foreign API suppliers.
• No API volume data. None reported how much API Nigeria imports or produces.
• No API shortage reported. Warnings of shortages in the press relate to finished medicines.
• Baselines are missing. The 70% reduction has no stated start period or product list.
• Timelines are open. The “5 Plus 5” article gave no end date for the scheme.

What It Could Mean for API Suppliers

Possible opportunities

• More local plants and 87 contract manufacturing arrangements could mean more companies buying APIs for finished products they once imported. This is our inference.
• Indian exports to Nigeria have been growing. A January 2026 report put Nigeria’s gain at USD 179 million in the first eight months of FY26, over 14% of India’s total pharma export increase, though that figure covers all pharma exports, not APIs.
• Industry’s own calls for local API support suggest buyers are paying attention to input supply.

Possible challenges

• If localisation reaches APIs, policy could shift toward local sourcing over time. No such rule is reported yet.
• Buyers face energy, financing and clearance pressure, which can affect order size and timing.
• The government’s stated aim of conserving foreign exchange (BusinessDay) makes payment terms worth settling early.

A Practical Checklist for API Suppliers Selling Into Nigeria

1. Identify your end buyers. Check whether your customer is a local manufacturer, a contract manufacturer or an importer of finished products that is moving to local production.
2. Confirm the product’s status. Ask whether the finished product is on the Ceiling List or covered by the “5 Plus 5” scheme, since that affects demand for the API.
3. Prepare your documentation. Have the CoA, specification, GMP certificate and any dossier support available for your specific product. Do not assume what a buyer needs; ask.
4. Show your supply chain. Be ready to explain where starting materials come from and which steps happen at your own site. See our guide to manufacturer versus trader.
5. Agree payment terms early. Settle currency, timing and documents before shipment so a good order does not stall.
6. Plan for clearance time. Allow for delays in clearing inputs, which industry groups have raised.
7. Offer a second-source story. Buyers who want resilience value a reliable supplier with consistent batches and clear change control.
8. Watch the policy. Track NAFDAC notices and any extension of the Presidential Executive Order, and keep your Nigerian customers informed.

Questions Nigerian Buyers May Ask Their API Supplier

• Are you the manufacturer, and which steps happen at your own facility?
• Which site makes this API, and what GMP evidence exists for that site?
• What documents do you provide for my product and market?
• How do you handle batch consistency and change control?
• What are your lead times and minimum order quantities for this product?
• What payment terms do you accept?

Chemox Pharma’s Perspective

Chemox Pharma is a WHO-GMP certified manufacturer of APIs and intermediates, with its own facility and in-house R&D centre in Dahej, Gujarat. If you are a Nigerian manufacturer, contract manufacturer or importer planning a local product, our team can discuss the APIs and intermediates we offer and the documentation we can provide for your specific product. Availability and documentation vary by product, so please confirm details with us directly.

Request a Quote and Documentation

If you are sourcing APIs or intermediates for production in Nigeria, send us your product list, target volumes and document requirements, and contact Chemox Pharma for a quote and documentation review.

FAQs

Q: What did NAFDAC report about local manufacturing in Nigeria?

Brand Spur, citing NAFDAC’s Director General, reported in September 2026 that imports of products covered by localisation measures fell 70% and that local pharmaceutical manufacturers rose from 174 to 190. It also reported the imported-to-local ratio moving from 70:30 in 2019 to 50:50 in 2025.

Q: Has Nigeria banned API imports?

We found no report of a ban on API imports. The restrictions described in the coverage relate to finished medicines, through the Ceiling List and the “5 Plus 5” policy. Check the current position with NAFDAC.

Q: Do Nigerian manufacturers still import APIs?

Reports describe raw materials and APIs as largely imported, and industry groups are asking for stronger policy support for local API production. We did not find API volume figures.

Q: What is the “5 Plus 5” policy?

It is a NAFDAC scheme, introduced in 2019, that encourages importers of selected medicines that local industry can make to build local plants or partner with qualified local manufacturers.

Q: What does Nigeria API imports local manufacturing policy mean for Indian API suppliers?

It can change who buys APIs, with more local and contract manufacturers and fewer finished-product importers for covered medicines. No API import restriction has been reported, so suppliers should confirm product status, documentation and payment terms with each buyer.