Following days of market turbulence, the naira experienced a rebound at the official I&E Window on Tuesday, closing at N878.61/$1, a notable improvement from the N925.34/$1 on Monday.

This positive shift signifies a significant recovery for the local currency, which had recently surpassed the 1000/dollar mark at the official window just over a week ago.

The naira had been under strain due to ongoing foreign exchange shortages, with some analysts attributing the recent pressure to the alleged hoarding of the U.S. dollar by certain bank customers.

Meanwhile, at the parallel market on Tuesday, the naira maintained its position at 1,365/dollar, mirroring Monday’s closing level.

This development marks a slight interruption in the consistent decline of the local currency in the black market.

It had previously dropped from N1,200/dollar to over N1,300/dollar approximately a week ago.

According to a Bureau De Change operator in Zone 4, Abuja, the dollar was being traded at N1,350 to the naira in the capital city, with a selling range between N1,360 and N1,365.

Another operator, Ibrahim Yahu, stated that he could only sell the dollar at N1,360.

Despite maintaining stability for two consecutive days, as reported by Aboki FX, data from the FMDQ Securities Exchange revealed a recovery of N46.73 against the U.S. dollar, with the naira bouncing back from N925.34/$1 on Monday to N878.61/$1 on Tuesday.

It’s worth noting that this positive trend follows the naira’s stabilization after a Central Bank of Nigeria report highlighted that Nigerians spent $1.58 billion on health tourism, foreign education, and other personal matters in the first six months of 2023.

The breakdown showed expenditures of $245.68 million on overseas health-related issues, $896.09 million on foreign education, and $434.63 million on other personal foreign needs.

In 2024, high drug prices are anticipated to persist, reaching over N900bn due to the depreciation of the naira, placing additional strain on Nigerians who already faced challenges with elevated drug costs in 2023.

According to data from the International Trade Center, Nigeria’s pharmaceutical imports in 2022 amounted to $1.05bn, costing N475.17bn at the exchange rate of that time.

With the current exchange rate as of February 19, 2024 (N902.45/$), the cost is projected to rise to N950.81bn.

The multilateral agency relies on data from the National Bureau of Statistics and the United Nations COMTRADE, and due to the unavailability of 2023 foreign trade records, 2022’s data is utilized.

Pharmaceutical products encompass various items, including dried glands, organ extracts, heparin, medicaments, wadding, and more.

Nigeria predominantly imports pharmaceutical products from countries such as India, China, Malaysia, Netherlands, and Belgium.

Since 2019, pharmaceutical imports have consistently exceeded $1bn annually, with projections indicating a further increase in 2024, attributed to foreign drug companies focusing on importation.

Notably, GlaxoSmithKline Consumer Nigeria Plc and Sanofi announced plans to shift to a third-party distribution model, leading to a drastic surge in drug prices exceeding 100%.

Experts, including a pharmaceutical professor and industry professionals, highlight the vulnerability of Nigeria’s pharmaceutical industry to foreign exchange volatility.

Sesan Kareem, CEO of HunPharm Africa, emphasizes the impact of fluctuating exchange rates on medicine prices, pointing out that the scarcity of foreign exchange hampers the stability of material prices.

Concerns have been raised by political figures, medical associations, and President Bola Tinubu, who endorsed resolutions to address the rising cost of pharmaceuticals, including sector regulation.