Edo State Aims to Revive Edo Pharmaceutical Company with Chinese Investment, Neighboring States' Support

Edo State Government engages Chinese investors to revive Edo Pharmaceutical Company, aiming to supply neighboring states and African nations, while enhancing healthcare access and employment.

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Nyakundi Report

Newsroom 3 min read

Primary source BusinessDay Nigeria

Edo State Governor Monday Okpebholo’s administration is advancing plans to revive the Edo Pharmaceutical Company, a long-dormant facility in Benin City, through negotiations with Chinese investors and other stakeholders, according to Kenny Okojie, Executive Secretary of the Edo State Drugs and Health Commodities Management Agency (DMA). The initiative, disclosed during a press briefing by the Ministry of Information and Strategy, seeks to reinvigorate the company, which was established during the military regime of late Governor Samuel Ogbemudia and later vandalized in 2020 during the #EndSARs protests.

The proposed revival involves a public-private partnership (PPI) model, where Chinese investors would construct and operate the facility, while the state provides a conducive regulatory environment. Okojie emphasized that the company’s production would extend beyond Edo, supplying neighboring states such as Delta, Bayelsa, Ondo, and Kogi, as well as other African countries. ‘They want to have a PPI arrangement with us. They will build, establish, and run. The state, we only give the enabling environment and the right policy for them to exist in the State,’ she stated.

The Edo Pharmaceutical Company, once a regional hub for drug manufacturing, fell into disrepair after years of neglect and the 2020 vandalism. Okojie highlighted the project’s potential to create jobs for the youth and generate state revenue. ‘In no time, we will be able to accomplish that mandate. It’s going to give employment to our youth, generate revenue to the state as well,’ she added, attributing the initiative to the Okpebholo administration’s leadership.

The DMA, which oversees drug procurement and distribution, has also digitalized its operations to streamline logistics. Okojie noted that the agency’s software enables centralized management of warehouses across Nigeria, facilitating a group purchasing framework. This system has already facilitated N13.2 billion in procurement within Edo State, ensuring 90% stock levels of essential medications for public and private health facilities.

The agency’s infrastructure has seen significant upgrades, including warehouse renovations funded by the Global Fund. Okojie confirmed that Edo now maintains functional, standardized warehouses for drug storage, a first in the South-South region. ‘We have about 26 states that now have DMA and Edo is fortunate to be one. Edo State is the first in the South. Edo State is also the first to establish DMA that was able to hit the ground running within six months,’ she said.

To ensure affordability, the state now purchases medicines directly from manufacturers, bypassing middlemen. Okojie claimed this approach reduces costs, with manufacturers offering prices lower than those provided to distributors. ‘The manufacturers have promised us that the medications they are giving us, the prices, they don’t even give to their distributors over the years,’ she said. This strategy has enabled free malaria drug distribution in state hospitals, with Okojie vowing to penalize facilities that charge for malaria treatment.

The DMA operates under the oversight of the Pharmacists Council of Nigeria and the National Agency for Food and Drug Administration and Control (NAFDAC). Okojie assured that the agency adheres to strict regulatory standards. ‘As a highly regulated, registered, and monitored agency, the DMA would not compromise standards in the discharge of its responsibilities,’ she stated, reinforcing public confidence in the initiative.

The project aligns with broader efforts to strengthen healthcare access in Edo and beyond. By leveraging private investment and digital innovation, the state aims to address drug shortages and improve public health outcomes. Okojie’s remarks underscore the administration’s focus on sustainable development and regional collaboration.

The revitalization of the Edo Pharmaceutical Company reflects a strategic shift toward self-reliance in healthcare production. With Chinese investors’ involvement, the state seeks to position itself as a key player in the pharmaceutical sector, benefiting both local and international markets.

Edo’s approach highlights the intersection of public policy, private investment, and technological advancement in addressing systemic challenges. As negotiations progress, the success of this initiative could serve as a model for other states seeking to revitalize dormant industries and enhance healthcare delivery.

https://www.businessdayonline.com/edostate-chinese-investors-pharma-company/

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