The Alternative Bank Moves to Address Nigeria’s Medicine Security Crisis with Financing for Local Pharma

Sunday Ehigiator

The Alternative Bank (AltBank) is stepping up efforts to strengthen Nigeria’s medicine security by providing targeted financing to local pharmaceutical manufacturers and supply chains.

The move comes as Africa continues to shoulder nearly a quarter of the global disease burden while relying heavily on imported drugs and medical commodities — a vulnerability laid bare during the COVID-19 pandemic.

Through asset-backed and risk-sharing financing models, the bank aimed to support domestic drug production, improve distribution networks, and reduce the country’s dependence on imports, according to a statement from the financial institution.

As part of the effort, the bank said it had extended an invitation to industrial pharmacists across Nigeria to partner on solutions.

Speaking at a recent interview with Association of Industrial Pharmacists of Nigeria (NAIP) for the maiden edition of its Pharma Industry Digest, Group Executive at The Alternative Bank, Dr. Jekwu Ozoemene, underscored the urgency of localising pharmaceutical production.

Ozoemene stated, “Pharma and medicine security and sovereignty are essential to Nigeria’s survival.

“We are positioned to partner with all stakeholders to make this a reality.”

As a fully licensed non-interest bank, AltBank said it deployed a unique model of patient capital. By utilising asset-backed, risk-sharing financing structures, the bank aligned repayment schedules with a business’ actual cash flow, rather than imposing rigid loan stipulations, it said.

It added that the structured financing was designed to grow sustainably alongside the businesses it funded.

The statement added, “To support this vision, the bank has rolled out targeted healthcare-focused products nationwide. These solutions include stock, vendor, and distributor financing, alongside supply chain financing and revolving drug funds.

“The bank is also facilitating broader systemic improvements through health insurance schemes, health management information systems, capital market access, and Banking-as-a-Service platforms.

“These solutions are currently being scaled through strategic partnerships with State Health Boards to ensure quality drugs reach Nigerians at lower costs.”

It stated that beyond immediate healthcare outcomes, the localised approach addressed broader macroeconomic challenges facing the country. It said by substituting pharmaceutical imports with domestic production, the initiative aimed to significantly reduce the sector’s reliance on foreign exchange, thereby easing pressure on the local currency.

“Furthermore, catalysing industrial-scale pharmaceutical manufacturing will stimulate job creation across the entire value chain, from laboratory research and quality control to logistics and retail distribution, fostering robust economic resilience,” it added.

Ozoemene signalled the bank’s intent to look far beyond standard trade financing to build true industrial capacity.

“We don’t only want to finance the company that imports the most products,” he explained.

Ozoemene added, “We also want to finance the industrial pharmacist, establishing a WHO-compliant manufacturing plant to produce essential medicines locally.

“We want to back the researcher working on new formulations for malaria treatments or hypertension drugs designed specifically for the Nigerian demographic.

“This approach to healthcare inherently aligns with the core principles of non-interest banking, which prioritises investments that generate positive social impact alongside sustainable financial returns.

“By channelling capital into projects that directly preserve human life and enhance public well-being, the bank is reinforcing its mandate to operate as an ethical financial catalyst, ensuring that funding is purposefully directed toward tangible, life-saving infrastructure rather than speculative ventures.”