NAFDAC’s ‘5+5’ and Ceiling List Policies Spark Industry Expansion and Foreign Investment in Nigeria
The Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), Prof. Mojisola Adeyeye, has announced that the agency’s groundbreaking ‘5+5’ policy and Ceiling List initiatives are significantly boosting local production of medicines and medical devices in Nigeria. These strategic reforms have contributed to the growth of the industry, with the number of pharmaceutical manufacturing companies increasing from 174 to 190.
Prof. Adeyeye shared these insights during the recent Lagos Chamber of Commerce and Industry (LCCI) ‘Invest in Nigeria Conference and Expo 4.0,’ where she urged foreign investors from over 43 countries to leverage Nigeria’s transforming regulatory landscape and explore opportunities within the nation’s burgeoning pharmaceutical sector.
She explained that the ‘5+5’ Policy, introduced in 2019, is a regulatory initiative designed to phase out the importation of select medicines identified through rigorous scientific surveys and analyses. The policy prohibits importation of these products, which local manufacturers possess the capacity to produce, requiring stakeholders to establish local facilities or engage in contract manufacturing with qualified Nigerian firms.
The Ceiling List complements this effort by restricting the import of certain products—rising from nine in 2020 to 36 today—thus further incentivizing local manufacturing.
Prof. Adeyeye highlighted that these policies have led to a significant increase in facility layout submissions for both pharmaceutical and medical device companies. The recent Presidential Executive Order 2024, which eliminates tariffs, excise duties, and VAT on imported machinery, equipment, and raw materials for local healthcare manufacturing, has further accelerated this momentum.
As of June 2026, a total of 176 pharmaceutical companies have undergone layout reviews and received approvals from NAFDAC—70 existing and 106 new companies—indicating a clear industry shift from reliance on imports to robust local production. Notably, the importation of drugs in these categories has decreased by 70%.
This strategic push has resulted in a remarkable shift in the import-to-local manufacturing ratio—from 70:30 in 2019 to 50:50 by 2025. The number of companies engaging in contract manufacturing has surged from just 10 in 2019 to 87 in 2026, a testament to growing confidence in Nigeria’s domestic capacity.
‘The rise in contract manufacturing reflects a strategic move toward sustainable and scalable local operations,’ Prof. Adeyeye emphasized. Many existing facilities are undergoing retrofitting and upgrades to meet international cGMP standards, ensuring compliance and quality.
NAFDAC remains committed to supporting this growth trajectory through regulatory assistance, handholding, and CAPA clinics. Currently, 37 manufacturers are under construction or upgrading, with 28 operational after completing construction.
Prof. Adeyeye also highlighted increased foreign investment, particularly in the medical devices sector, with international partners entering joint ventures to establish local manufacturing plants. Technology transfer of formulations with existing local capacity is also on the rise.
The industry is experiencing a steady increase in new manufacturers—16 pharmaceutical and six medical device/IVD companies—aligning with strict regulatory standards, including the installation of HVAC systems and critical infrastructure.
The overall impact of the ‘5+5’ and Ceiling List policies is evident: 44 new and retrofitted companies have emerged, representing a 25% increase in local manufacturing capacity. To further stimulate local production, NAFDAC is implementing the Global Listing Re-evaluation initiative, aimed at identifying products suitable for local manufacturing and encouraging industry participation.
Prof. Adeyeye reaffirmed that Nigeria’s commitment to local manufacturing is crucial for strengthening national food and drug security through innovative, market-friendly regulatory policies. She urged stakeholders to continue collaborating with NAFDAC to sustain this growth.
‘The increase in local manufacturing is in tandem with the Executive Order of the Federal Government. We should Embrace it,’ she concluded.
