Health
Fidson Gets GCR Ratings Affirmation on Solid Earnings Growth
By Aduragbemi Omiyale
The favourable competitive position and solid earnings growth of Fidson Healthcare Plc have earned the company the affirmation of its A(NG)/A1(NG) ratings by GCR Rating.
In a statement from GCR obtained by Business Post, it was disclosed that drug manufacturing firm also has a stable outlook because of the expectations that its enlarged business profile will continue to underpin strong earnings growth, while the relatively moderate gearing metrics will provide the necessary headroom for the restructuring of its balance sheet.
Fidson is a leading player in the Nigerian pharmaceutical industry. Its large scale, multiple product offerings and ongoing capacity expansion have been leveraged to drive robust earnings growth. However, persistent working capital pressure has resulted in significant strain on gearing metrics and liquidity, thereby constraining the rating.
GCR stated that the ratings of the company are sustained by robust revenue growth and strong earnings over the review period, with revenue increasing by 58.7 per cent to N84.1 billion in the 2024 financial year and by 66 per cent in the first quarter of 2025 due to higher traded volumes and upward price adjustments.
Additionally, the EBITDA margin improved to 24 per cent in 2024, supported by improved operating efficiencies and product mix optimisation.
The rating agency said it expects Fidson to sustain this strong momentum with 40 per cent topline growth on the back of continued capacity expansion and further price adjustments. “This, combined with stringent cost control, could sustain the EBITDA margin within the 22 per cent-24 per cent range over the outlook period,” a part of the statement said.
Fidson offers over 150 products across 10 therapeutic categories and its ongoing capacity expansion and a growing product portfolio further supports this position, with its network of more than 120 distributors nationwide ensuring strong retail visibility.
To further enhance its competitive position, the company plans to broaden its product range to cater to affordable market segment and anticipates ramping up export sales into other West African markets in the short to medium term.
However, the significant reliance on short term debt facilities to fund working capital indicates liquidity stress, despite strong earnings moderating gearing metrics.
Its rapid business expansion has materially elevated the working capital requirements relating to inventory procurement and prepayments for imports, necessitating substantial use of short-term debt, resulting in a steep negative net operating flow of N5.4 billion last year and N3.8 billion in Q1 of 2025 versus the moderately negative OCF in 2023.
The widening funding gap resulted in an increase in gross debt to N32.9 billion in 2024 from N28.5 billion in 2023 and N14.9 billion in 2022, with over 75 per cent of total debt being short term.
But, GCR noted it has taken cognisance of a proposed equity raise where some of the proceeds to be applied to reduce short term debt, and further equity to support working capital requirements.
“This, in addition to expected robust earnings growth would ease gearing pressure and allow a greater proportion of working capital requirements to be funded internally,” it stated.
By Modupe Gbadeyanka
As part of its efforts to safeguard public health in Nigeria, the National Agency for Food and Drug Administration and Control (NAFDAC) has strengthened its regulatory framework for blood and blood products.
A statement signed on Thursday by the Director General of NAFDAC, Prof Mojisola Adeyeye, disclosed that to achieve its goal, the agency will collaborate with relevant authorities and stakeholders to establish a robust regulatory framework that promotes the availability of safe, quality-assured and efficacious blood and blood products, while strengthening public confidence in Nigeria’s healthcare system.
NAFDAC said it intends to partner with government institutions, healthcare providers, blood establishments, development partners and other stakeholders for the robust oversight.
Mrs Adeyeye disclosed that already, her organisation has received the support of the Minister of Health and Social Welfare, Prof Ali Pate.
According to her, NAFDAC has been given the mandate to regulate blood and blood products in line with global best practices and the World Health Organisation (WHO) recommendation that these products be subject to oversight by National Regulatory Authorities (NRAs) for medicines.
She said blood and blood products are classified as essential medicines and must be consistently available with assured quality, safety and affordability, stressing that the aim is to protect patients throughout the blood transfusion chain.
Effective regulatory oversight will support the quality and safety of blood products from donor assessment and collection through testing, processing, storage, transportation and use, the NAFDAC chief noted.
Several African countries, including Egypt, Ghana, South Africa, Tanzania, Zimbabwe, Senegal and Rwanda, have already established regulatory oversight of blood and blood products by their NRAS, she added.
Mrs Adeyeye pointed out that NAFDAC’s renewed regulatory preparedness builds on its broader transformation into a modern, science-based regulatory authority.
Already, it has attained WHO Maturity Level 3, completed WHO Global Benchmarking ML3 re-assessment, obtained WHO prequalification for its drug laboratory, and established internationally accredited laboratory and quality management systems. These capabilities provide a strong foundation for the effective regulation of blood and blood products.
As part of its preparedness, NAFDAC has established a dedicated Vaccines, Biologicals and Medical Devices Registration and Regulation Directorate to oversee the registration and regulation of these products.
The agency established a Vaccines, Biologicals and Medical Devices Laboratory Services many years ago, but became a Directorate in 2024, responsible for quality control, including laboratory testing and lot release, while the Directorate of Evaluation and Research provides oversight of Good Manufacturing Practices. An ultra-modern laboratory facility is also being developed to further strengthen its capacity for the assessment and quality control of vaccines and biologics.
By Modupe Gbadeyanka
An organisation known as GoMed Nigeria is offering free reproductive health services to Nigerian students through a digital self-care platform.
This is being delivered through a partnership with the United Nations Population Fund (UNFPA) and the Lagos State Government.
The pilot scheme will be available to students of the University of Lagos. They will enjoy easier and more private access to essential health products, accurate information, and professional support.
Young Nigerians face some of the highest rates of unintended pregnancy and unmet need for contraception in the world.
Cost, distance, stigma, misinformation, and fears about confidentiality routinely stop students from seeking the products and guidance they need, with consequences that include unintended pregnancy, unsafe abortion, sexually transmitted infections and interrupted education.
The self-care platform is designed to remove each of these barriers. Through the platform, students receive free contraceptives and other sexual and reproductive health commodities provided through the Lagos State Ministry of Health and UNFPA, exclusive discounts on health essentials, and fast, discreet delivery directly to campus and student hostels.
Students can also access trusted sexual and reproductive health information and services through UNFPA’s SoftLife 247 and U-Plan platforms. Through U-PLAN, they can chat directly with qualified Family Planning Service Providers to receive accurate information and address their concerns. They can also confidently engage with GoMed’s registered pharmacists for confidential, judgement-free guidance on medicines and other health products.
“Students should be able to get reliable health information and essential products without cost, distance or fear of judgement becoming barriers.
“This platform brings free sexual and reproductive health commodities, other affordable health products and professional guidance together, with discreet delivery directly to students on campus,” the chief executive of GoMed Nigeria, Mr Anthony Edeki, said.
Also speaking, UNFPA in Nigeria Resident Representative, Muriel Mafico, said, “As the UN agency mandated for “Sexual and Reproductive Health and Rights”, we are committed to reducing preventable maternal deaths and addressing the unmet need for family planning, including by providing and overseeing access to life-saving commodities worldwide.
“Working alongside our partners, we’re helping roll out the digital Self-Care Platform—so that vital, life-changing information can reach more people, more easily. Together, we want to empower Nigeria’s next generation to make informed health choices and achieve stronger health outcomes and a brighter future.”
By Modupe Gbadeyanka
A financing framework to accelerate the electrification of health facilities nationwide has been approved by the federal government.
The approval was announced at the third meeting of the Inter-Ministerial Steering Committee (IMSC) of the Nigeria Power for Health Initiative (NPHI), a presidential programme jointly coordinated by the Federal Ministries of Power and Health and Social Welfare.
The committee was constituted to ensure reliable electricity in at least 30 per cent of Nigeria’s health facilities by the end of 2027.
At the meeting, chaired by the Minister of State for Health and Social Welfare, Mr Isiaq Salako, and co-chaired by the Minister of Power, Mr Joseph Tegbe, members of the Inter-Agency Technical Committee (IATC) presented the recommendations under consideration.
Speaking at the meeting, Mr Salako said the Steering Committee approved a financing framework to mobilise investment for healthcare electrification, alongside a facility energy management framework requiring participating hospitals to build sustainable systems for managing their energy infrastructure.
He said the committee also cleared eight (8) private sector proposals for further engagement, drawn from about 70 submissions received during the National Healthcare Electrification Investor Matchmaking Week in Lagos.
The Health Minister added that Energy Management Teams are already in place at federal tertiary hospitals, with state governments being encouraged to set up similar structures. The initiative will now be institutionalised through dedicated budgetary provisions and a full-time Project Coordination Unit to oversee implementation.
On his part, Mr Tegbe declared that the initiative must now move from announcements to actual project delivery.
Describing the NPHI as one of the President Bola Tinubu administration’s flagship programmes, he said the emphasis should shift towards commissioning completed projects that Nigerians can see for themselves, rather than further groundbreaking ceremonies and public messaging.
He emphasised the need for teaching hospitals, state hospitals, and primary healthcare centres to be fully energised, noting that the Rural Electrification Agency has already energised 5 Federal Teaching Hospitals and several other health facilities nationwide.
He also tied the initiative directly to patient outcomes, arguing that dependable power would end hospitals’ reliance on emergency generators, and pledged that the Ministry would continue to prioritise the initiative’s funding needs while ensuring value for money.
