Starting a pharmacy business in Nigeria can be a lucrative venture, given the country’s large population, growing healthcare needs, and rising demand for pharmaceutical products. The Nigerian pharmaceutical industry is rapidly evolving, with opportunities in both retail and wholesale markets.
A pharmacy shop, also known as a drug store, is a retail business that sells prescription medications, over-the-counter drugs, healthcare products, and medical supplies. Pharmacies also provide essential services like dispensing medications, offering health advice, and sometimes even delivering specialized care such as immunization or consultations.
Pharmacies can range from small neighborhood stores to large, well-established chains, but they all aim to meet the healthcare needs of the public by ensuring the safe and efficient distribution of pharmaceutical products.
Types of Pharmacy Shops
In Nigeria, there are several types of pharmacy shops, each catering to different segments of the market:
Community Pharmacies: Community pharmacies are the most common type of pharmacy shop in Nigeria. They serve local communities and provide a wide range of over-the-counter medicines, prescription drugs, and basic healthcare products. Community pharmacies also offer personalized services like health consultations, advice on medications, and sometimes even health screenings.
Hospital Pharmacies: These pharmacies operate within hospitals and healthcare centers. They cater to patients admitted to the hospital and provide prescribed medications, medical supplies, and sometimes clinical pharmacy services. Hospital pharmacies typically have a larger inventory, including specialized medications that may not be available at community pharmacies.
Chain Pharmacies: Chain pharmacies are retail pharmacy shops that operate under a brand with multiple locations across different regions. They provide consistency in services, a broad range of products, and often offer additional services such as delivery, loyalty programs, and online purchasing.
Online Pharmacies: Online pharmacies have emerged in recent years, offering customers the convenience of purchasing medications and health products from the comfort of their homes. These pharmacies have become popular due to the increasing use of e-commerce and a demand for more convenient access to pharmaceutical products.
Wholesale Pharmacies: Wholesale pharmacies focus on the distribution of pharmaceutical products to other pharmacies, healthcare providers, and hospitals. They often operate in bulk and are crucial in ensuring the availability of medicines across regions.
The global pharmaceutical market size was estimated at US$ 1,573.20 billion in 2023 and is projected to grow to US$ 3,033.21 billion by 2034, rising at a compound annual growth rate (CAGR) of six point fifteen percent (6.15%) from 2024 to 2034. This growth is driven by factors like an aging global population, increased access to healthcare, and the rising demand for chronic disease treatments and vaccines.
In the Nigerian context, while the pharmacy market is still developing, it has significant growth potential. The pharmaceutical industry in Nigeria contributes heavily to the country’s healthcare system, with estimates indicating that the industry is worth over USD 4 billion.
Nigeria has a growing network of pharmacy businesses, with a few prominent players making significant strides in the retail and wholesale sectors:
HealthPlus Pharmacy – HealthPlus is one of Nigeria’s leading pharmacy chains, with locations across several states. It offers a broad range of pharmaceuticals, health supplements, beauty products, and wellness services.
Medplus Pharmacy – Medplus is known for its comprehensive pharmacy services, including prescription medications, over-the-counter drugs, beauty products, and wellness products. Medplus has several branches in major cities, including Lagos and Abuja.
Pharmacy Plus – Pharmacy Plus is another major player in Nigeria, with a strong presence in the retail pharmacy sector. The business provides a wide selection of pharmaceutical products, healthcare services, and health consultations.
Goodlife Pharmacy – A well-established pharmacy with multiple locations across Nigeria, Goodlife Pharmacy offers products ranging from prescription drugs to over-the-counter medications and beauty items.
Viva Pharmacy – Viva Pharmacy is a growing chain that caters to the growing demand for pharmaceutical products, offering a wide range of medications, vitamins, and medical supplies.
The projected revenue in the Pharmacies market in Nigeria is expected to reach US$15.75bn in 2025. This is based on the forecasted annual growth rate (CAGR 2025-2029) of five point fifty-three percent (5.53%). As a result, the market volume is expected to reach US$19.53bn by 2029.
Pharmacies in Nigeria face a competitive environment, with a mix of local businesses, multinational corporations, and growing e-commerce platforms all vying for market share. Despite the challenges, the market presents numerous opportunities, particularly in underserved areas where the demand for healthcare products is high.
To start a pharmacy business in Nigeria, there are key regulatory bodies, legal requirements, and procedures that must be followed:
Pharmacy Council of Nigeria (PCN): The Pharmacy Council of Nigeria is the primary regulatory authority governing pharmacy practice in the country. All pharmacy businesses must be licensed by the PCN to operate legally. The council ensures compliance with standards for the sale and distribution of pharmaceutical products and oversees the qualifications of pharmacists.
National Agency for Food and Drug Administration and Control (NAFDAC): NAFDAC regulates the import, export, manufacture, and distribution of food, drugs, cosmetics, and medical devices. Any pharmaceutical product sold in Nigeria must be registered with NAFDAC to ensure its safety, efficacy, and quality.
Registration with Corporate Affairs Commission (CAC): Like any other business, a pharmacy must be registered with the Corporate Affairs Commission (CAC) to obtain a Certificate of Incorporation. This step is necessary for establishing a legal business entity in Nigeria.
Qualifications and Licenses for Pharmacists: Pharmacy businesses must employ qualified pharmacists who are registered with the Pharmacists Council of Nigeria (PCN).
Additionally, pharmacy owners must meet certain requirements regarding premises, staffing, and equipment before they can receive their operating license.
Premises Approval: A pharmacy shop must meet certain infrastructural standards. The premises must be approved by the PCN, and businesses must ensure proper storage and handling of pharmaceutical products, including temperature control for sensitive items.
Market Trends in Nigeria’s Pharmacy Business
E-Commerce Growth – Online pharmacies are growing in popularity, driven by the increasing use of smartphones, internet access, and the desire for convenience. Online platforms allow consumers to order medications and have them delivered to their doorsteps.
Health and Wellness Products – There is an increasing demand for health supplements, vitamins, and wellness products. Pharmacies are diversifying their product offerings to cater to this growing trend.
Affordable Healthcare – There is a rising focus on making healthcare more affordable in Nigeria. Pharmacies are capitalizing on this trend by offering more generic medications and partnering with healthcare providers to reduce costs.
Challenges in the Pharmacy Business
Regulatory Hurdles: Navigating the complex regulations around drug sales, packaging, and advertising can be challenging for pharmacy owners. Compliance with NAFDAC, PCN, and other regulatory bodies’ rules requires constant monitoring.
High Operational Costs: The cost of running a pharmacy, including obtaining licenses, sourcing quality drugs, and renting premises, can be high. Additionally, fluctuations in currency exchange rates impact the cost of imported pharmaceutical products.
Counterfeit Drugs: The presence of counterfeit medications is a major issue in Nigeria’s pharmaceutical sector. Pharmacies must ensure that they source their products from authorized distributors to avoid selling counterfeit drugs.
Competition: The pharmacy business in Nigeria is highly competitive, with numerous players offering similar products. Businesses must differentiate themselves through customer service, product quality, and pricing.
Despite the challenges, the pharmacy business in Nigeria holds significant promise due to:
Growing Healthcare Needs: The increasing demand for healthcare services and products, especially in urban areas, offers great potential for pharmacies.
Expanding Middle Class: As the middle class grows, so does the demand for quality health products and services, including pharmaceuticals.
Technology Integration: The rise of e-commerce and mobile technology presents opportunities for pharmacies to reach a wider audience through online platforms and delivery services.
Starting a pharmacy business in Nigeria can be a rewarding venture, given the growing demand for healthcare services and products. However, the market is competitive, and entrepreneurs must navigate regulatory requirements, economic challenges, and consumer behavior shifts.
With the right strategy, including focusing on quality, customer service, and adapting to emerging trends like e-commerce, pharmacy businesses can thrive in Nigeria’s dynamic market.
If you require a bankable feasibility report on establishing a pharmacy shop business in Nigeria, use the details below to reach us.
Anaekwe Everistus Nnamdi
Founder & Market Research Analyst
Foraminifera Market Research Limited
foraminiferaltd@gmail.com or +2348033782777 (call and whatsapp)
Investment Opportunities in Nigeria | Business Opportunities in Nigeria | Profitable Industries in Nigeria | Investment Landscape in Nigeria | SME Opportunities in Nigeria | Foreign Direct Investment in Nigeria | Emerging Markets in Nigeria |
