Emzor Pharmaceutical Industries has raised ₦26.7 billion through a five-year fixed-rate bond as the Nigerian pharmaceutical manufacturer moves to expand its production capacity and strengthen local drug manufacturing.
The bond, issued through Emzor Pharma Funding SPV Plc, carries a 19 per cent coupon and forms part of the company’s broader ₦40 billion bond issuance programme. The Series 1 bond was listed on the FMDQ Exchange following strong investor demand that resulted in the issue being oversubscribed.
The funds will be used to support Emzor’s working capital requirements, expand its manufacturing operations and accelerate the completion of a major pharmaceutical project focused on producing active pharmaceutical ingredients locally.
A key part of the investment is the completion of what Emzor describes as Africa’s first full-scale antimalarial Active Pharmaceutical Ingredient (API) manufacturing facility.
APIs are the active substances in medicines responsible for producing their therapeutic effects. Much of the pharmaceutical industry in Africa continues to depend on imported APIs, leaving manufacturers vulnerable to foreign exchange pressures, international supply disruptions and rising import costs.
Emzor said the new facility is expected to help reduce Nigeria’s dependence on imported pharmaceutical ingredients while strengthening the country's domestic drug manufacturing capacity.
The company’s Chairman, Emeka Okoli, said the successful bond issuance represented an important milestone in Emzor’s efforts to deepen local pharmaceutical manufacturing.
He also noted that strong investor participation and the oversubscription of the bond demonstrated confidence in the company's business and long-term expansion plans.
The transaction is Emzor’s second domestic bond issuance and comes under a wider ₦40 billion financing programme designed to provide long-term capital for the company’s operations and expansion.
The development is significant for Nigeria’s healthcare sector, which has faced persistent challenges arising from dependence on imported medicines and pharmaceutical raw materials.
Local production of APIs could help Nigerian drug manufacturers secure critical ingredients closer to home and reduce their exposure to international supply-chain disruptions.
The investment could also contribute to the development of technical expertise, industrial capacity and employment opportunities within Nigeria’s pharmaceutical sector.
Emzor was founded by pharmacist Stella Okoli and has grown from a small chemist shop in Lagos into one of Nigeria’s major indigenous pharmaceutical manufacturers. The company produces medicines across several therapeutic categories and has expanded its manufacturing operations over the years.
The latest fundraising comes as Nigeria continues to pursue greater self-sufficiency in the production of essential medicines and pharmaceutical ingredients.
The Federal Government and international development organisations have also identified local API production as an important component of strengthening Nigeria’s pharmaceutical manufacturing sector.
For Emzor, the bond provides additional long-term funding at a time when the company is seeking to move further up the pharmaceutical value chain by manufacturing not only finished medicines but also critical ingredients used in their production.
The successful issuance also demonstrates the growing role of Nigeria’s capital market in providing financing for major investments in the real economy.
As the company deploys the funds, attention will now turn to the completion of the antimalarial API facility and the extent to which increased local production can help reduce Nigeria’s reliance on imported pharmaceutical inputs.
The development represents another step towards building a more resilient domestic pharmaceutical industry capable of meeting a larger share of the country's healthcare needs.
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