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The performance of any enterprise is influenced by the environment in which it is located. The last two decades has witnessed the pre and post democratic governance in Nigeria as well as a number of government initiatives aimed at addressing some challenges facing the health delivery system of the country. The purpose of this paper was to study the capacity utilization of the pharmaceutical industry within the period to understand whether there was or no association in the performance with these changes. A survey of the capacity utilization in the production of solid and liquid dosage forms was carried out. A study of the availability and distribution of scientific workforce in the industry was also undertaken. Interviews were held with some individuals to gain more insight in the activities of the pharmaceutical industry. The scientific workforce within and among organizations varied considerably and the variation was influenced by perceived benefits and opportunities. The study showed that the capacity utilization of the pharmaceutical industry increased steadily but marginally over the period. There was reason to believe that the marginal increments were influence by the government policies and initiatives during this period, but could be better if some economic investments such as steady electricity were made. It was concluded that a sustained support and provision of infrastructures by the government together with trained and motivated scientific workforce are important in improving the capacity utilization in the pharmaceutical industry.

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