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ABUJA (Reuters) - Nigeria's cabinet approved on Wednesday a plan to set up a joint venture with pharmaceutical firm May & Baker Nigeria Plc to produce vaccines, the health minister said.
The company will have an initial capital of 100 million naira ($328,515).
Shares in May & Baker rose nearly 5 percent on the Nigerian bourse after the announcement, outperforming the main share index which was up 0.7 percent.
Health minister Isaac Adewole told reporters the joint venture would be based in the commercial capital Lagos with the government holding a 49 percent stake and the pharmaceutical firm the rest.
"It will take off in 2017," he said, adding that a final agreement would be signed within two weeks.
"The company between 2017 and 2021 will produce basic vaccines that we need," he said.
Reporting by Felx Onuah; Writing by Ulf Laessing; Editing by Susan Fenton