Nigerian company will make millions of HIV and malaria test kits after US Aid cuts

The Nigerian company Codix Bio intends to manufacture millions of HIV and malaria test kits despite cuts to USAID financing.

The pharmaceutical business Codix Bio Ltd. in Nigeria is preparing to manufacture millions of quick diagnostic test kits for HIV and malaria at a new facility outside of Lagos in response to cuts in US foreign aid. The action is intended to address possible supply shortages in regional and local markets, especially as USAID funding keeps declining.

Recently, the United States, which has long been the world’s greatest giver of humanitarian help, has reduced its foreign aid budget, with USAID accounting for half of this total. US assistance to Nigeria in 2024 totaled $740 million, with the majority of the amount going toward combating HIV and malaria and supplying vaccinations to regional health facilities.

Although it is yet unknown how the cuts will affect Nigeria in its whole, the Nigerian government has stated that it intends to find domestic money to continue some of the donor-supported programs.

According to Olanrewaju Balaja, general manager of Codix Bio, the company will start distributing the test kits later this month. The study is supported by the World Health Organization and being carried out in partnership with the South Korean pharmaceutical company SD Biosensor.

With an initial yearly manufacturing capacity of 147 million kits, the new factory can grow to produce over 160 million units. Based on USAID and PEPFAR supply data, Balaja claims that this capability is adequate to meet Nigeria’s internal demand.

“We have enough to meet the demand based on the statistics of what is supplied for a specific program year and looking at what we currently have in capacity for Nigeria,” he stated in an interview.

According to Balaja, Codix Bio also hopes to grow its supply chain throughout Sub-Saharan and West Africa. “We can travel to other African nations as well as West and Sub-Saharan Africa,” he stated.

With almost 27% of all cases worldwide, Nigeria has the largest malaria load in the world, according to the World Health Organization. UNAIDS statistics also shows that the nation has the fourth-highest HIV burden in the world.

According to Balaja, “the goal was for us to be able to play in the field of supply of rapid diagnostic test kits for donor agencies, which was mostly led by USAID.” He pointed out that the locally produced test kits are anticipated to be bought by the Nigerian government as well as outside partners like the Global Fund, ensuring a sustainable supply chain in the face of erratic donor funding.

Codix Bio’s effort is a major step toward regional medical resilience and domestic health independence as the future of international aid becomes more uncertain.