Laboratory Business in Nigeria and Economic considerations

Umunnakwe, Johnbosco; Umunnakwe, Bernadine; Ezirim, Kelechi; Ahmed, Yakubu

مجلة الاقتصاد والتجارة الدولية
Volume 5, Numéro 1, Pages 12-28
2023-12-31

Laboratory Business In Nigeria And Economic Considerations

Authors : Umunnakwe Johnbosco . Umunnakwe Bernadine . Ezirim Kelechi . Ahmed Yakubu .

Abstract

Abstract: In Nigeria, there is a realization both in government and private sectors, that laboratories should be run as business ventures in line with relevant economic laws and principles. The Nigerian clinical laboratory services market for instance was valued at USD 527.68 million in 2021 and is projected to reach USD 695.11 million by 2027 registering a CAGR of nearly 4.7% during the forecast period, 2022 - 2027. The laboratory business could be a sole proprietorship, partnership, co-operative or limited liability company. The major roles of a laboratory include, sampling, method validation, equipment, raw material testing, in process control and specification, finished product testing, product development and market surveillance. They are influenced by the laws of self-interest, competition and supply and demand. The five basic economic principles governing investments in laboratory business in Nigeria include; opportunity cost, marginal principle, law of diminishing returns, principle of voluntary returns and real nominal principle. The challenges facing laboratory business in Nigeria include, lack of government funding, Staffing shortages, poor management training, and internal conflict. Lack of government funding of analytic laboratories has been responsible for rejection of Nigeria’s export produce and most consumer goods from Nigeria and Africa extract. The continent of Africa contributes less than nine percent to the global laboratory activities, and this is one of the reasons you begin to see that various rejected products come from the African region. The government of Nigeria should be tasked to subsidize the procurement of the necessary equipment and facilities or provide finance incentives so that laboratory services locally and for export from Nigeria could attract premium prices at their destinations. The Nigerian law clearly provides that no product like food, drugs, medical devices, cosmetics, water, chemicals, consumer products, should be marketed or consumed without the certification of a public analyst, for objectivity, economic consideration and safety.