LAGOS, Nigeria — Nigerian pharmaceutical company Codix Bio Ltd has announced plans to begin large-scale production of HIV and malaria test kits from its newly built plant in Ogun State, aiming to fill critical gaps in healthcare supply caused by recent funding cutbacks from the United States Agency for International Development (USAID).
The announcement, made in a Reuters report on Thursday, comes as the global health sector reels from the ripple effects of executive orders signed during the Trump administration, which paused U.S. funding for HIV treatment and affected several foreign aid programs, including USAID and PEPFAR (President’s Emergency Plan for AIDS Relief). These funding reductions have posed serious challenges for developing countries heavily reliant on U.S. health assistance.
Speaking to Reuters, Olanrewaju Balaja, General Manager of Codix Bio Ltd, said the company is set to roll out the first batch of test kits later this month, with the goal of reaching millions of people across Nigeria and other African countries.
“From the statistics of what is supplied (by USAID and PEPFAR) for a specific programme year, and looking at what we have currently in capacity for Nigeria, we have enough capacity to meet the demand,” Balaja stated.
The production initiative is being carried out in partnership with South Korean pharmaceutical giant SD Biosensor, and is also receiving technical and operational support from the World Health Organization (WHO).
The new facility in Ogun State boasts an initial production capacity of 147 million test kits per year, with the ability to scale up to over 160 million kits annually to meet increasing regional demand.
Balaja noted that Codix Bio’s long-term objective is to become a major supplier of rapid diagnostic test kits not only for Nigeria but across West and Sub-Saharan Africa. He added that the company aims to work closely with donor agencies like the Global Fund and the Nigerian government, which are expected to be key buyers of the test kits.
“The focus was for us to be able to play in the field of supply of rapid diagnostic test kits for donor agencies, which particularly USAID was at the forefront,” he explained.
Health experts have welcomed the move, describing it as a positive step towards localizing healthcare solutions and reducing dependence on foreign aid, especially in light of shifting global political and economic priorities.
With millions across Africa still battling infectious diseases like malaria and HIV, Codix Bio’s initiative represents a significant stride in strengthening Africa’s health resilience and ensuring consistent availability of life-saving diagnostic tools.
