The Federal Executive Council (FEC) has approved N2.5billion Joint Venture (JV) agreement between the Federal Government and May & Baker Plc to produce vaccines from 2017 to 2021.
Briefing Journalists after the FEC meeting on Wednesday, the Minister of Health, Prof. Issac Adewole explained that it is the outcome of the Council’s meeting which was presided over by Acting President Yemi Osinbajo.
According to Adewole, Federal Government would own 49 per cent of the joint venture while May and Becker would own 51 per cent.
He said: “Between 1940 and 1991, Nigeria was not only producing vaccines such as smallpox, yellow fever, and anti-rabies vaccines but we also exported to Cameroon, Central African Republic and a few other countries.
“In 1991 the Vaccine Production laboratory stopped production ostensibly because government wanted to reactivate and upgrade the facility which did not take place till today.
“What Council did today (Wednesday) was to put life into this joint venture agreement that proposes to establish a company called Bio-vaccines Ltd which will be jointly owned by Federal Government of Nigeria and May and Baker Plc.”
According to the minister, the board of the company will comprise seven people, four from May and Baker and three from federal government. He said the company would be expected to meet the nation’s basic vaccines requirements in the next four years with a take-off capital of N100 million.
The Minister explained that that May and Becker would make an equity contribution N1.3 billion while the federal government would contribute N1.2 billion
He said: “The company between 2017 and 2021 will produce basic vaccines that we need. We have considered vaccines as a security issue, it is not only health but we need to consider the security of all Nigerians particularly our children.
“So, with this agreement we will be able to produce those common vaccines and from 2021 and beyond other vaccines that are necessary will also be out in board for administration to Nigerians.
“We are quite happy that today (Wednesday) it has taken place and we believe that Nigeria has started a journey to vaccines security.’’
