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GCR Affirms Fidson Healthcare BBB(NG) Rating

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By Modupe Gbadeyanka

Global Credit Ratings (GCR) has affirmed the national scale Issuer ratings assigned to Fidson Healthcare Plc of BBB(NG) and A3(NG) in the long term and short term respectively; with the outlook accorded as Stable.

Concurrently, GCR has assigned a national scale long term rating of BBB(NG) to the N2 billion Secured Fixed Rate Bond. The ratings are valid until June 2018.

Explaining reasons for the ratings, GCR said Fidson remains one of the key players in the Nigerian pharmaceutical sector, with an estimated market share of 6%. The business is enhanced by a strong marketing base and good distribution network, as well as strong relationships and synergies with various local and international suppliers, which should guarantee a sustainable supply of raw materials and consumables.

The company experienced significant rise in production costs in 2016, on the back of pressure on the procurement process, due to several factors, including the devaluation of the Naira and protracted foreign exchange shortages. In addition, there was production downtime between March and May 2016, as equipment from the old factories was relocated to the newly completed Biotech plant, it said.

Overall, revenue fell by 6.8 percent to N7.7 billion in FY16. Given the relative stability in foreign currency supply since February 2017 and the government support for locally produced medicines, Fidson reported a 79 percent annualised increase in revenue to N3.4 billion in 1Q 2017, indicating relatively sound performance against the FY17 budget, a statement by the rating agency said.

GCR noted that although the gross margin remained unchanged at 53 percent in FY16, rising energy costs, as well as elevated selling and distribution expenses continue to impact EBITDA and operating margins.

Input costs are expected to remain high in the current year, but economies of scale should see margins improve.

Net interest coverage weakened to 1.9x (FY15: 2.2x) in FY16, but improved to 2.1x in 1Q FY17, supported by stronger earnings.

It said the resilience of the margin going forward is contingent upon earnings stability and will continued to be monitored closely by GCR.

“Note is taken of Fidson’s long standing banking relationships, which have allowed for a steady source of funding and favourable terms in the challenging operating environment.

“Gross debt reduced to N4.4 billion at FY16 (FY15: N4.6 billion) as Fidson settled certain maturing term facilities.

“Accordingly, gross and net gearing were reduced to 68 percent and 62 percent respectively (FY15: 74 percent; 72 percent),” the statement said.

However, gross and net debt to EBITDA rose to 302 percent and 279 percent at FY16, due to the curtailed profitability during the year.

The debt profile has improved, with long term debt accounting for 55% of the interest-bearing obligations at FY16 (FY15: 60 percent). While Fidson is planning to raise additional debt and/or equity funding to support production capacity, the expected increase in production volumes from the new facilities should see gearing metrics decline by FY17.

Apart from FY13, Fidson reported working capital releases in all the years under review. The significant release recorded in FY16 was largely driven by trade receivables, which followed rigorous credit control measures and increased recovery efforts.

Bureaucratic delays on the part of the Lands Registry and other government agencies have prolonged the security perfection process for the N2 billion fixed rate bond.

Accordingly, GCR will only consider any additional rating uplift provided by the security package once the security is perfected in full.

Upward rating movement is presently limited by the tough operating environment which has resulted in curtailed performance.

However, upward pressure would arise from the attainment of targets over the medium term, and in particular, a significant reduction in debt. Negative rating action could emanate from sustained decline in earnings profile, which could lead to lower than anticipated debt service metrics and deterioration in all other credit protection metrics.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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NNPC Donates MRI Machine, Others to Nnewi Teaching Hospital

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NNPC MRI Machine Nnewi teaching hospital

By Modupe Gbadeyanka

A 1.5 Tesla Magnetic Resonance Imaging (MRI) machine has been donated to the Nnamdi Azikiwe University Teaching Hospital (NAUTH), Nnewi, Anambra State, by the corporate social responsibility arm of the Nigerian National Petroleum Company (NNPC) Limited, NNPC Foundation.

In a statement on Sunday by its Chief Corporate Communications Officer, Mr Andy Odeh, the state-owned oil organisation said the medical item was given to the healthcare institution as part of its commitment to improving healthcare access and strengthening medical infrastructure across Nigeria.

The MRI system is expected to significantly improve access to advanced diagnostic imaging services for millions of Nigerians across the South-East (Anambra, Enugu, Imo, Abia and Ebonyi States) as well as neighbouring Delta State.

The foundation also provided critical supporting infrastructure, including RF shielding systems, chillers, backup UPS systems, electrical installations, specialised imaging accessories, ventilation systems, CCTV and oxygen monitoring systems, intercom communication facilities, and other patient comfort technologies designed to ensure optimal operation of the facility.

Before now, patients requiring advanced MRI diagnostic services often faced prolonged waiting periods, exorbitant costs, and the burden of travelling long distances in search of functional imaging centres.

But it is believed that the intervention of the NNPC Foundation would provide succour to patients.

At the presentation of the items to the institution over the weekend, the chief executive of the NNPC, Mr Bashir Bayo Ojulari, represented by the Managing Director of NNPC Foundation, Mrs Emmanuella Arukwe, described the intervention as a strategic investment in healthcare access, diagnostic precision, and improved patient outcomes, noting that the facility aligns with the company’s commitment to building sustainable systems and impactful national institutions.

“The installation of the MRI in NAUTH exemplifies our commitment, as our intent is to build enduring institutions, sustainable systems and legacies. This intervention aligns with our conviction that access to quality healthcare underpins human dignity, longevity and economic productivity,” Mr Ojulari stated.

‎He described the company’s social investments as viable currencies that strengthen the relationship between the Company’s core mandate of providing and managing energy for Nigerians and meeting stakeholders’ expectations.

‎In his remarks, the Governor of Anambra State, Mr Charles Soludo, who was represented by the Commissioner for Health, Dr Afam Obidike, said the intervention would enhance safe and precise diagnosis and treatment for patients across the South-East region.

He also commended NNPC Foundation for donating the MRI facility to the state, noting that the intervention would significantly improve access to quality healthcare services for the people.

The Chief Medical Director of NAUTH, Prof Joseph Ugboaja, thanked the donor for the items, saying NNPC Foundation has demonstrated that corporate social responsibility is not just a policy statement but a lifeline for institutions like ours.

“For too long, patients in our catchment area have had to travel long distances to access this level of diagnostic precision, often at prohibitive costs. With this installation, we will eliminate that burden,” he enthused.

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Nigeria Launch €4.2m Initiative to Boost Capacity Against Outbreaks

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By Adedapo Adesanya

Nigeria has launched a €4.2 million programme supported by the European Union (EU) and implemented by the World Health Organisation (WHO) to strengthen the country’s capacity to detect and respond to disease outbreaks.

The initiative, known as the EU Support to Public Health Institutes in Nigeria (EU SPIN), will be carried out over four years in partnership with the Federal Ministry of Health and Social Welfare.

It is aimed at improving the performance of selected public health institutions through better coordination, faster information sharing and enhanced workforce capacity.

Speaking at the launch in Abuja on Monday, the Minister of State for Health and Social Welfare, Mr Iziaq Adekunle Salako, described the programme as a significant step towards strengthening Nigeria’s healthcare system.

“This initiative is designed to strengthen our health institutions, and it is truly a welcome development. It will improve the well-being of Nigerians, especially our vulnerable populations,” he said, noting that it aligns with the federal government’s broader health reform agenda.

Nigeria continues to face a dual health burden, with recurring infectious disease outbreaks alongside a growing prevalence of non-communicable diseases such as hypertension and diabetes.

According to the WHO, non-communicable diseases now account for 27 per cent of deaths in the country, while malaria alone contributes about 30 per cent of global malaria fatalities.

Recurrent outbreaks of cholera, diphtheria, Lassa fever, meningitis and Mpox also remain a major public health concern.

The EU SPIN programme is expected to address systemic gaps that slow outbreak response by strengthening collaboration among public health institutions and clarifying roles across federal, state and local levels.

It will also support real-time data systems to enable quicker and more informed decision-making during health emergencies.

A key component of the initiative is workforce development, with plans to train up to 75 per cent of public health staff in leadership, prevention and response strategies, as well as digital skills.

The European Union Ambassador to Nigeria, Mr Gautier Mignon, said the programme reflects a shared commitment to building resilient health systems.

“Through EU SPIN, the European Union is investing in strong, digitally enabled public health institutions in Nigeria. This partnership underscores our commitment to health security and sustainable systems strengthening,” he said.

Also speaking, the WHO Representative in Nigeria, Mr Pavel Ursu, noted that improved coordination and digital tools would enhance the country’s ability to protect lives.

“By improving coordination, skills and digital tools, the project will help protect lives and keep communities healthier,” he said.

Officials said the programme would ultimately strengthen links between public health systems and primary healthcare services, ensuring that communities benefit from faster and more effective responses to health threats.

By 2028, the initiative is expected to deliver more efficient inter-agency coordination, clearer institutional responsibilities and more reliable public health data nationwide, with progress tracked through national monitoring systems and periodic reviews involving government and development partners.

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Malaria: SUNU Health Advocates Wider Adoption of HMO Plans

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SUNU Health --logo

By Aduragbemi Omiyale

To achieve a malaria-free Nigeria, a leading Health Maintenance Organisation (HMO) with a robust nationwide presence, SUNU Health Nigeria Limited, has called for a wider adoption of HMO packages for citizens.

It stressed that managed care provides a critical safety net, ensuring families can access quality preventive services without the burden of immediate, high costs, adding that this structured approach transforms healthcare from an unpredictable expense into a manageable, guaranteed service.

The company, which officially unveiled a comprehensive strategic roadmap aimed at drastically cutting down on malaria-related deaths, emphasised that the disease can be eradicated if citizens and stakeholders adopt consistent preventive measures.

“Eradication is within our reach if we synchronise our efforts,” the chief operating officer of SUNU Health, Dr Faith Nwachi, said, noting that the tools for victory range from environmental hygiene to the consistent use of treated nets, which are easily accessible to every Nigerian.

The organisation noted that it came up with the latest framework to significantly reduce the disease burden that has historically hindered Nigeria’s productivity and public health stability.

The urgency of this intervention is underscored by concerning data from late 2025, which revealed a sharp upward trend in cases, it stated.

With over 24.5 million confirmed cases reported in the first nine months of last year alone, the 2026 landscape demands aggressive action. Currently, malaria remains a leading cause of mortality, responsible for approximately 30 per cent of child deaths and 11 per cent of maternal deaths annually.

A central pillar of the roadmap is a focus on preventative care. As of early 2026, according to the World Health Organisation, malaria still accounts for nearly 30 per cent of all hospital admissions in Nigeria.

By addressing the root causes and transmission cycles, SUNU Health seeks to drastically lower these statistics, ensuring Nigerians can lead more active lives without the constant threat of infection.

Dr Nwachi further underscored the economic necessity of this shift, stating that “prevention is significantly cheaper than cure.”

The financial toll on the Nigerian economy is staggering, with billions of Naira lost annually to treatments and diminished man-hours. For the average family, frequent bouts of illness lead to catastrophic out-of-pocket expenses that undermine financial security.

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