Pharmaceutical firms face rising finance costs as interest rates bite
Nigerian pharmaceutical companies listed on the stock exchange have seen a sharp rise in finance costs, putting pressure on their profitability. Firms like MeCure Industries Plc, Neimeth International Pharmaceuticals Plc, and Morison Industries Plc reported higher borrowing expenses, reflecting Nigeria’s high interest rate environment. Industry experts, including Dr Muda Yusuf and Professor Akpan Ekpo, attribute these rising costs to both macroeconomic factors and structural challenges such as power supply. Some companies benefited from government incentives and shifts in consumer preferences, but liquidity pressures remain a concern for others.
TLDR
- Combined finance costs for major pharmaceutical companies rose by 46.5 per cent in the first quarter of 2026, with MeCure Industries Plc leading the increase.
- MeCure’s finance cost jumped 49.5 per cent, while its operating profit nearly doubled in the same period.
- Neimeth and Morison Industries also saw higher finance costs, though Morison kept expenses flat but still posted a quarterly loss.
- Experts say high interest rates, reliance on generators, and exchange rate challenges are driving up costs for manufacturers.
- Government incentives and a shift toward locally made drugs have helped some firms, but liquidity issues persist for others like Fidson Healthcare Plc.
