Resignation of Glaxo Smikline (GSK)’s  Oldest Nigerian Shareholder: Group Urges FG to Stem GSK UK’s Plan to Shut Down GSK Consumer Nigeria Plc for More Profit

The National Movement for the Actualization of Good Governance (NAMAGG) has called on Nigerian Regulators to save the country’s patent, shareholders and employees of GlaxoSmithKline (GSK) Consumer PLC ‘s from the plans of GSK UK to unfairly shut down GSK Consumer PLC Manufacturing and Distribution operations.

In a Statement in Benin City, Edo State Nigeria, the National President of the Movement for the Actualization of Good Governance (NAMAGG)-Douglas Ogbankwa, on July 12, said the body has observed with dismay the unfair related party trade practices of United Kingdom  aimed at shutting down the local production of its drugs and vaccines in Nigeria.

NAMAGG noted that GSK UK, a trading partner of GSK Consumer PLC in Nigeria, has deliberately refused to supply the Nigeria market its life saving medicines- Asthma, Antibiotics and critical vaccines.

The statement read: “Actualization of Good Governance (NAMAGG) has observed with dismay, the unfair related party trade practices of GSK UK, which is aimed at shutting down GSK Consumer PLC local production of its drugs and vaccines in Nigeria. As was previously reported, GSK UK who are related trading partners of GSK Consumer PLC has deliberately refused to supply the Nigeria market its life saving medicines and critical vaccines. This action has led to an attendant astronomical increase in the prices of the drugs and vaccines in a way that makes these critical medicines beyond the reach of the ordinary Nigeria. 

“We are also aware that this action and the plan to shut down GSK Consumer PLC operations was rejected by some board members has led to the resignation of one of the oldest board members on the GSK Consumer PLC Board – Mr. Samuel Kuye.  Mr Samuel Kuye is a chartered accountant and Fellow of the Institute of Chartered Accountants of Nigeria (FCA) who has served as an independent executive director on the GSK Consumer PLC board for nine years resigned due to the coercive plans of GSK UK. With Mr. Kuye’s resignation and the appointment of two GSK UK employees as board members, GSK UK now has majority board members on the GSK Consumer PLC Board.

“The Diversionary Comment of GSK Communications Team that it is the paucity of forex that is responsible for the current GSK drug supply scarcity and price increases is utterly false. Forex Trading and access has been liberalised in the present administration, so they putting the blame on Forex is a hoax.

“We believe that the primary purpose of Government is the protection of lives and properties of Nigerians and we call on the Government to intervene and stop this anti-Nigeria agenda by GSK UK. Shutting down GSK Consumer Nigeria PLC which is the second largest healthcare company on the Nigerian Stock Exchange goes against the local medicines production improvement plans of NAFDAC and the Bola Ahmed Tinubu plans for the Nigerian Economy.  The time for the local regulators to act is now!”

According to NAMAGG, a medical doctor who spoke anonymously complained about the silence of the local regulators like NAFDAC. 

It quoted the physician as saying, “Would GSK try this in any other country? This is simply racism at its worst, why will a UK multinational deprive Nigerians of its life saving drugs and vaccines? If you go to their global website, you will see that they are still able to supply medicines war-torn Ukraine but are unable to provide medicines in Nigeria. Why will they stop supply of products and lie that the problem is due to forex? 

“This administration has made changes to the Nigeria foreign exchange policy which has seen significant flow of foreign exchange and confidence in the Nigeria Economy by investors, GSK and its employees have been unable to restart supply of their products, instead they are planning to shut down the company. Shut down and turn Nigeria into a dumping ground for imported medicines instead of one that is producing pharmaceutical products. NAFDAC and the current government has made it clear that they want to improve local manufacturing and supply of medicines in Nigeria and across Africa. I would call on NAFDAC to stop this disgraceful action of GSK UK especially as it is obvious that local shareholders are not in support of this plan.”

Speaking to a capital market specialist about this new development ” he said, it is obvious that this is all about more money for GSK, if GSK UK successfully moves GSK Nigeria into a distributor model like they did in Kenya and other parts of Africa, they could reap an estimated extra 30 million pounds of profit yearly from their sales of medicines to Nigeria.  This is approximately 300-million-pound profit in 10 years – profit that we think can be used to build new antibiotics factory in Nigeria, instead they have sold their factory, sold their brands and have taken the money out of Nigeria with the support of the Board.  I am very proud of Mr. Kuye for resigning which has led to questions and proof that GSK UK is trying to force the death of a truly Nigerian pharmaceutical company”