Pharmaceutical companies listed on the Nigerian Exchange (NGX) experienced a 46.5% surge in combined finance costs in the first quarter of 2026, driven by persistent double-digit benchmark interest rates (MPR at 26.5%) and expanded debt obligations.
According to financial statements analyzed by Sunday PUNCH, combined borrowing expenses across MeCure Industries Plc, Neimeth International Pharmaceuticals Plc, and Morison Industries Plc rose from ₦2.09 billion in Q1 2025 to ₦3.07 billion in Q1 2026.
Company Financial Breakdown: Q1 2026 Performance
| Listed Pharmaceutical Firm | Q1 2026 Finance Cost | Q1 2025 Finance Cost | YoY Change (%) | Operating Profit / PAT Performance |
| MeCure Industries Plc | ₦2.62 Billion | ₦1.75 Billion | +49.5% | Operating profit nearly doubled to ₦4.54 Billion (from ₦2.57bn). |
| Neimeth Int’l Pharmaceuticals | ₦439.5 Million | ₦334.1 Million | +31.6% | PAT grew modestly to ₦113.4 Million (from ₦105.5m). |
| Morison Industries Plc | ₦4.86 Million | ₦4.86 Million | 0.0% | Reduced quarterly loss to ₦8.16 Million (from ₦18.55m loss). |
Fixed Asset Investments & Capital Allocation Trends
To cushion supply chain disruptions and reduce import dependence, major pharmaceutical manufacturers expanded their fixed capital footprint during the quarter:
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Fidson Healthcare Plc: Expanded Property, Plant, and Equipment (PPE) by 12.9% within a single quarter, growing from ₦30.94 billion to ₦34.93 billion.
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May & Baker Nigeria Plc: Recorded a 24.1% year-on-year increase in fixed assets.
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MeCure Industries Plc: Increased fixed asset investments by 9.3%, reaching ₦44.41 billion.
Expert Analysis: Policy Rates vs. Enterprise Capital
Commenting on the financial squeeze, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), attributed the rising finance charges directly to monetary policy tightening rather than operational inefficiencies:
“Anywhere we are seeing high finance costs is largely as a result of the high interest rate regime. With the Monetary Policy Rate (MPR) standing at 26.5 per cent, commercial borrowing rates inevitably rise. Firms recording lower finance charges have likely opted for equity financing or retained earnings reinvestment to bypass high borrowing costs.”
The Manufacturers Association of Nigeria (MAN) reiterated that sustained high interest rates continue to hinder industrial expansion, urging policy interventions to improve credit access for critical real-sector operations.
