A recent report from BMI, a Fitch Solutions subsidiary, projects that the naira could depreciate to ₦1,993 per U.S. dollar by 2028, posing substantial risks for Nigeria’s pharmaceutical and medical device industries. With over 95% of its medical devices imported, Nigeria’s healthcare sector may struggle under increasing costs due to the weaker currency.
The report, titled “Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth,” details how a weaker naira could make imported medical devices unaffordable, eroding the purchasing power of consumers and the healthcare system. High-demand devices such as diagnostics, orthopedics, and dental products are expected to be significantly impacted.
However, the report notes that a weaker naira might boost competitiveness for locally produced medical devices. This could benefit domestic manufacturers despite challenges like limited skilled labor, outdated technology, and insufficient infrastructure.
The Tinubu administration has taken steps to mitigate these pressures, including an executive order issued in June 2024 to reduce tariffs, excise duties, and VAT on certain medical machinery and materials, aimed at supporting local production.
BMI projects that Nigeria’s medical device market could grow to ₦171.1 billion by 2028, driven by a rising population and a focus on universal healthcare. Despite this potential, the sector faces ongoing challenges such as high inflation, tight monetary policies, and limited foreign investment.
As of November 11, 2024, the naira was trading at ₦1,681.42 per dollar, reflecting a slight dip from previous levels amid a significant decrease in FX turnover.
