Nigerian Pharma Firms Face 46.5% Rise in Finance Costs

In the first quarter of 2026, pharmaceutical companies listed on the Nigerian Exchange experienced a 46.5% increase in combined finance costs, rising from N2.09 billion in Q1 2025 to N3.07 billion. This increase is attributed to high interest rates and a growing reliance on debt.

MeCure Industries Plc reported the highest finance cost growth at 49.5%, increasing from N1.75 billion to N2.62 billion, with its operating profit nearly doubling from N2.57 billion to N4.54 billion. Neimeth International Pharmaceuticals Plc's finance cost rose by 31.6%, from N334.1 million to N439.5 million, while its profit after tax grew slightly from N105.5 million to N113.4 million.

Morison Industries Plc maintained flat finance expenses at N4.86 million but improved its loss from N18.55 million to N8.16 million. Experts, including Dr.

Muda Yusuf from the Centre for the Promotion of Private Enterprise, indicated that the rising finance costs reflect Nigeria's high interest rate environment rather than operational inefficiency.