The naira is projected to depreciate to N1,993 against the U.S. dollar by 2028, creating major challenges for Nigeria’s pharmaceutical industry, especially in sourcing essential medical devices, according to a new report by BMI, a subsidiary of Fitch Solutions.

In the report titled Weak Naira and Structural Challenges to Constrain Nigeria’s Medical Devices Market Growth, BMI warned that although Nigeria’s economy is expected to rebound, the medical devices sector will likely face operational and demand-related difficulties in the near future.

The report highlighted Nigeria’s dependency on imports for over 95% of its medical devices, which exposes the sector to exchange rate volatility.

“A persistently weak naira will drive up import costs for medical devices and reduce consumer purchasing power. Like many other markets in sub-Saharan Africa, Nigeria depends heavily on imports for its medical devices, with a reliance rate exceeding 95%,” the report stated.