Pharmaceutical Stakeholders Raise the Alarm over Plot to Sabotage FG’s War against Fake Drugs

Pharmaceutical stakeholders under the auspices of the of National Association of Patent and Proprietary Medicine Dealers (NAPPMED), Liberation Zone, Lagos Island, have raise the alarm over plot to destabilise the federal government’s battle against counterfeit drugs in the country following an alleged hijack of the Coordinated Wholesale Centre (CWC) by a select group of non-pharmaceutical actors in Lagos state.

According to the association, the CWC which was initiated by the Pharmaceutical Society of Nigeria to sanitise the chaotic distribution of drug chains is in jeopardy because of the monopolistic control of the project by extortionists and powerful minority players, who have effectively taken control of the drug distribution hub in Lagos.

Giving details of the development, the Chairman of NAPPMED, Liberation Zone, Mr. Osita Nwajide, who traced the disturbing situation to alleged takeover of the designated CWC facility at Ijora, Lagos, by some non-pharmaceutical actors in connivance with some politically connected individuals who have sidelined those whose financial contributions was used to acquire the land for the CWC facility.

According to Nwajide, the funding of the land acquisition was through the financial commitment of over 920 members of the association over a decade ago, some of whom paid money ranging from N100, 000 to N100 million each to initiate the development of the wholesale facility.

He noted that their contributions exceeded N300 million in values, and were made with the expectation that they would become direct beneficiaries of the completed project.

“In what appears to be a calculated takeover, the CWC—originally designed to be an inclusive and professionally regulated hub—has now become the exclusive playground of a select few, who in collusion with several wealthy non-pharmaceutical investors, has edged out approximately 95 per cent of authentic pharmaceutical marketers, who once formed the backbone of Lagos Island medicine supply chain,” said Nwajide.

He contended that the “monopolisation undermines the core principles of the CWC, which were built on accessibility, affordability, and fairness. Instead, the present scenario now presents an oligopoly, where pricing, availability, and drug accessibility are being dictated by a powerful minority, not necessarily motivated by public health outcomes but by profiteering.”

Nwajide further explained that the land on which the Lagos CWC is being constructed was originally acquired through the contributions of genuine pharmaceutical stakeholders—Lagos island marketers who believed in the future of ethical drug distribution. “These marketers, over 3,000 strong, invested in the hope that the CWC would offer fair, regulated, and accessible wholesale operations.”

He expressed worries at the emerging scenario, saying that “the current reality reveals a different and disturbing picture. The project has now been monopolised by a handful of actors, notably non-pharmaceutical businessmen and a few politically connected players. They have sidelined the very individuals who initiated and funded the project.”

Nwajide lamented the ordeal of NAPPMED members who funded the acquisition of the land with cost of shop space at the CWC very exorbitantly fixed at N93.5 million per unit, with the implication of the vast majority of genuine pharmaceutical marketers —many of whom are small and medium-scale operators—been priced out of the very market they helped create.

He expressed pains over the plight of the traders whose hopes have been dashed by the monopolistic manipulation of a limited circle of investors, allegedly “led by Embassy Pharmaceuticals and a small group of non-pharmaceutical dealers in the name of City Pharmaceuticals and Partners. This will create a lopsided business environment and also weakens drug supply security in Nigeria’s most populous state.”

Continuing, he said, “the structure of the CWC was not intended to become an elitist enclave for a few wealthy traders, but rather a central, affordable location for regulated, quality drug distribution. Unfortunately, this vision is being perished before our very eyes. With only 720 shops available, this means less than 25 per cent of even the displaced contributors could theoretically get space—and only if they can afford a nearly hundred-million-naira price tag. This financial barrier is not only unethical but cripples the core purpose of the CWC- to provide a regulated, inclusive marketplace for safe pharmaceutical distribution.”

Nwajide warned that the development portends danger for the nation’s healthcare market as any disruption in the Lagos drug distribution market which houses a significant share of the nation’s pharmaceutical supply chain and consumption poses a risk to healthcare delivery nationwide.

“Already, early signs of supply distortion are surfacing—limited product variety, erratic pricing, and increasing reports of drug stock outs. If this monopolistic trend is allowed to continue unchecked, Lagos—and by extension, Nigeria— could face an unprecedented public health disaster marked by scarcity of essential medicines, inflated drug prices, and a resurgence of counterfeit medications as black markets fill the vacuum.”

The NAPPMED leader called for the provision of a second CWC to avert a full-blown crisis. “There is an urgent and non-negotiable need for the federal government through its Ministry of Health and the Pharmaceutical Council of Nigeria (PCN), and the National Agency for Food and Drug Control(NAFDAC) to approve a second Coordinated Wholesale Centre(CWC) in Lagos State. This new CWC must be guided by fairness, inclusivity, and transparency in allocation of spaces and pricing. Priority must be given to genuine pharmaceutical dealers/marketers and businesses that have record in compliance and regulations.”

The association recommended that the cost of the shop rental be made affordable and available for genuine and verified pharmaceutical operators. The process should also be transparent regulatory oversight of any future projects to prevent manipulation by monopolies.