The popular adage that it takes action to turn dreams into realities cannot be more apt in describing the gains recorded so far by NAFDAC. A brief discussion, of the gains and the impacts of the gains on several sectors of the Nigerian society, is presented in this chapter.

Enhanced Corporate Culture/Image

The greatest achievement of NAFDAC is the institutionalization of a culture that promotes transparency, accountability, hard work, and abhors corruption. It brought about behavioural change in the staff. NAFDAC’s commitment to transform the culture of corruption and prosecute the war against counterfeit and fake drugs was indeed the oil that lubricated the wheel of our success.
Transparency in the regulatory processes helped in our communication with stakeholders and made it effective and fruitful. It also contributed to the acceptance of the Agency by an international donor organization as the executing agency for Gain Fund Project for Vitamin A fortification in Nigeria. NAFDAC’s anticorruption stance brought support for the Agency and it helped it to achieve effective regulation in Nigeria. Our public enlightenment campaigns and other strategies bore much fruit because the Government, the Press and the Nigerian Public unwaveringly supported NAFDAC.
The management style of the Agency in Nigeria is emulated by other government agencies because the remarkable paradigm shift became an inspiration to others in public service. The Daily Sun publication by Don C. Adinuba titled, “NAFDAC as a Study in Management” asserts that NAFDAC’s transformation should make a rewarding study to students of management and leadership.45 To crown it all, the Agency on March 30, 2004, received an award organized by the Consumer Advocacy Forum of Nigeria (CAFON) as the 1st among the Best Consumer Sensitive Government Agencies.

Growth in the Health and Pharmaceutical Sub-Sector

In the typical formula of reform-agenda, we assume that the private sector is the engine of growth. NAFDAC’S reform in the pharmaceutical sector has shown that while the private sector is the engine, the public sector indeed oils this engine without which the former crashes. The credit for the improved profile of NAFDAC can be attributed to the untiring efforts of NAFDAC staff, the enthusiastic workforce of manufacturers, and pro-active government policies. These have led to a tremendous increase in production capacities of our local pharmaceutical industries as reported by individual manufacturers and the Pharmaceutical Manufacturers Group of Nigeria—PMG-MAN. Nigerian pharmaceutical industries witnessed a 35% increase in turnover drug production in 2002.

The Executive Secretary of PMG-MAN attributed improved performance of the sector to 100% import inspection policy and the new impetus from NAFDAC, which has seriously curtailed dumping.46 GlaxoSmithKline recorded a 77% growth in sales during the same period. The company’s General Manager for West Africa attributed this tremendous increase to “NAFDAC living up to its responsibilities of enforcing strict compliance to product regulation.”47 MAY & BAKER’s profit growth rose by 88% for the first half of 2003. The company was also optimistic of a better performance in the second half of 2003. Pharma Deko Plc witnessed an increased demand for its products resulting in a 78.5% increase in turnover in 2002.48 It is noteworthy that the company had not paid dividends since 1999 due to losses but the company declared dividends in 2003.49 NEIMETH International Pharmaceuticals Plc recorded 105% increase in its profit before tax at the end of its financial year in March 31, 2003.50 The Nigerian Association of the Chambers of Commerce, Industry, Mines and Agriculture in its review of the economic performance of the 2003 fiscal year, said that the government target of achieving 65% capacity utilization in the economy was not realized. The only exception was the pharmaceutical manufacturing sector where the vigorous onslaught of NAFDAC on fake and substandard products pushed capacity utilization to nearly 60%.51 NAFDAC activities, therefore, reinforced the confidence of investors in the pharmaceutical industry, as evidenced in the continuous upward movement in the share prices of the pharmaceutical companies quoted in the Nigerian Stock Exchange.

Nigerian stock exchange extolled NAFDAC over the rise in healthcare stocks prices, stating that capacity utilization of practitioners in the sector had greatly improved through the agency’s sustained fight against faking and counterfeiting of regulated products. The Exchange’s July monthly stock market review showed capacity in the industry at 64%, which had risen far above the 54% manufacturing sector average in recent times. This in turn is believed to have encouraged the standardization of the products, leading to recovery of lost market share. It has also brought the need to rehabilitate, expand, and modernize the companies’ plants, the possibility of opening new product lines and diversification to capture new markets. The Exchange noted that the success of the agency in controlling the importation of regulated products, beefing up surveillance at the ports, clamping down on major sources of fake products both locally and internationally impacted positively on the healthcare sector. Many companies have returned to profitability and have become key players in the sector. Chart 3 also shows soaring share prices of some quoted companies, from the year 2003 to July 2004.
The Agency's reforms have led to other West African countries’ renewed confidence and increased patronage of pharmaceutical products produced in Nigeria as evidenced by the lifting of the ban on “Made in Nigeria” drugs by the Ghanaian authorities.

Many Multinational Drug Companies are coming back to Nigeria due to the present regulatory environment. For example, Glaxo Smith Kline built a new OTC Factory worth one billion Naira. The company now locally manufactures Septrin Tablets. Their toothpaste brand, Macleans withdrawn from the Market is now locally produced. Pharmacia left earlier but is now back as a full fledged scientific office. Ciba – Gaeigy and Sandoz left and are now back jointly as Norvatis. Reckett Benckiser ltd, formerly importing Dettol Antiseptic disinfectant and soap now manufacturers locally. Tura range of products imported from Tura International England is now being manufactured locally by Tura International.

Increased Public Awareness

The public awareness created regarding NAFDAC's regulatory activities, especially those activities relate to fake and counterfeit drugs, resulted in the participation of the regulated industries, consumers, and other stakeholders in the promotion of food and drug regulation in Nigeria. These achievements, among others, have awakened consciousness that Nigeria is no longer a dumping ground for fake drugs, and other substandard regulated products. There is an encouraging level of compliance to NAFDAC's ban on the importation of counterfeit and other substandard products due to the commitment of importers to comply with NAFDAC directives. The consciousness and alertness of both the consumers and stakeholders were also heightened, particularly the dangers posed to health by the consumption of fake drugs and other substandard products. In a public opinion poll conducted by The Guardian newspaper on the activities of NAFDAC, 83% of 1,200 respondents rated NAFDAC’s performance as “good” or “excellent.”52
Consumers have now formed the habit of scrutinizing their drugs, food, and other regulated products for genuineness by checking expiry dates and the NAFDAC registration numbers before purchase and use.
Manufacturers and importers are encouraged to bring to the attention of NAFDAC all discovered cases of faking of their registered products for investigation, publication, and possible prosecution. Manufacturers and importers of unregistered products are spurred by NAFDAC’s publications of unregistered products to submit their products for registration, knowing fully well the negative impact such adverse publicity would have on their products and organizations.
NAFDAC’s staff enjoys high esteem, perception, and goodwill from the Nigerian public and consumers who are in a better position to appreciate the fact that NAFDAC is focused on the promotion of good health rather than being a punitive Agency.
The international community is not left out on this increased awareness on the activities of NAFDAC. An excerpt of a correspondence during the planning of a counterfeit drug conference for African countries in Dakar and Cape Town reads in part:

----------. “I am pleased to report that in planning for the conference, praise for NAFDAC and Dr. Akunyili has been universal. Everyone is very impressed with NAFDAC’s efforts and tenacity, and for that reason, we would like to highlight NAFDAC during the conferences as a model for other countries in Africa which are trying to win the battle against counterfeit drugs. Therefore, if it would be possible, we would be very appreciative if Dr. Akunyili could speak and participate in both Dakar and Cape Town version of the conferences”.---------. (Micheal B.Adlin, Ofice of Enforcement, U.S. Patent and Trademark office, P.O. Box 1450, Alexandria, VA 22313-1450)

Improved Output

From April 2001 to September 2005, the Agency carried out over ninety (90) destruction exercises of counterfeit and substandard products valued at over N10.51 billion (US$75.07 million). This represents a 4,230.8% increase in the value of products destroyed from 1994 to 1999 which was estimated to be about N204.12M (US$1.512 million).
The gradual upgrading of the Agency’s laboratories to international standards yielded fruits in the form of international accreditation. Our pesticide residue laboratory, with the support of the IAEA, was upgraded to check on residues of pesticides used in agricultural processes for raw materials intended for the food industry. On February 8 2005, we commissioned an ultra modern mycotoxin laboratory to ensure that our food products meet all sanitary and phytosanitary conditions. This will help improve the reputation of Nigeria as a reliable supplier of good quality food product to the global market. Our seafood laboratories have European Union (EU) accreditation for Fish and Shrimp Export, while the Central Vaccine Control Laboratory is recognized by the World Health Organization (WHO) as the best in the West African Sub-Region. The Pesticide Residue, Pesticide Formulation, and Mycotoxin Laboratories are affiliated with the International Atomic Energy Agency (IAEA) while the Vitamin Analysis Laboratory is affiliated with the United Nations Children’s Fund (UNICEF).