Pharmaceutical Society of Nigeria (PSN) President, Sam Ohuabunwa, has confirmed that many local manufacturers in the pharmaceutical sector have accessed the Central Bank of Nigeria (CBN) N100 billion intervention fund to cushion the impact of the COVID-19 pandemic and have deployed the resources to capacity expansion. Ohuabunwa said the capacity expansion, which include factory building, reconstruction, upgrading, buying new equipment, new factories and plants, was ongoing.
The PSN president, who made the disclosure in an interview, said the impact of the working capital fund, which was already in use, would be felt in three months time, while the fruits of the capital expenditure would yield by 2021. Explaining that some companies yet to access the loan have not met the demands of the banks, he noted that some that accessed the loan have deployed their working capital to work while others were awaiting when the new investment goes through. “Most people will not keep the capital idle, they have deployed it to work already,” he said. Appraising the impact of the release of the funds, which he noted was positive, he said it has boosted the morale and the overall psychology of the pharmaceutical industry.