By Afod Isong
Neimeth International Pharmaceuticals Plc has credited the Federal Government’s tax waiver on pharmaceutical raw materials for helping the company cut production costs and return to profitability after a challenging period.
Speaking at a media briefing in Lagos, the Managing Director, Valentine Okelu, said the two-year exemption from import duties and Value Added Tax (VAT) on critical pharmaceutical inputs has provided much-needed relief to local manufacturers.
The policy, which took effect on March 5, 2025, and runs until March 2027, was approved by President Bola Tinubu to reduce manufacturing costs, strengthen domestic production, and lower the prices of essential medicines.
Okelu noted that although some raw materials were not included in the exemption list, the majority of Neimeth’s inputs benefited from the waiver. He urged the government to sustain and expand the initiative to further support the pharmaceutical sector.
Return to Profitability
Describing 2025 as a “defining year,” Okelu said the company has successfully reversed years of losses despite foreign exchange volatility and rising operational costs.
“The era of losses has ended. Neimeth has returned to profitability,” he declared.
According to the company’s fourth-quarter results for the period ended December 31, 2025:
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Revenue rose by 64 per cent, from ₦4.49 billion in 2024 to ₦7.37 billion.
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Operating profit jumped to ₦2.7 billion, up from ₦18.9 million the previous year.
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Profit before tax stood at ₦1.48 billion, compared to a loss of ₦854.5 million in 2024.
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Net profit improved to ₦982 million, reversing a ₦885.3 million loss recorded in 2024.
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Earnings per share rose by 43.7 kobo, moving from a loss of 20.72 kobo to 22.98 kobo.
Okelu attributed the turnaround to strong volume growth across key product lines, disciplined cost management, restructuring of liabilities, and conversion of foreign currency obligations.
Investor confidence has also strengthened, with the company’s share price rising from ₦5.80 at the start of 2025 to ₦9.80 by January 30, 2026 — a 69 per cent increase. The stock gained more than 45 per cent during 2025.
Expansion and Long-Term Strategy
As part of its growth strategy, Neimeth has upgraded its manufacturing facility in Oregun, Lagos, to meet rising domestic demand. Construction of a new pharmaceutical manufacturing plant in Amawbia, Anambra State, is also progressing.
Okelu said the upcoming facility will meet World Health Organisation standards and serve as a centre of excellence for pharmaceutical production. It is expected to strengthen Nigeria’s local manufacturing capacity and position the company to leverage opportunities under the African Continental Free Trade Area (AfCFTA).
Looking ahead, Neimeth aims to double earnings in the medium term and solidify its position as a leading pharmaceutical manufacturer in Africa. The company is also preparing to mark its 70th anniversary in 2027, reflecting decades of presence in Nigeria’s healthcare sector.
Okelu concluded that 2025 marks a turning point for the company, with plans to consolidate its transformation into a profitable, growth-driven pharmaceutical brand in the years ahead.
