The Federal Government has approved the establishment of Medipool, a group purchasing organization aimed at reducing the cost of essential healthcare products across Nigeria. The announcement was made by the Coordinating Minister of Health and Social Welfare, Prof. Ali Pate, following the sixth Federal Executive Council (FEC) meeting of the year on Monday.
Prof. Pate explained that Medipool will be funded through the Basic Health Care Provision Fund and, eventually, federal tertiary hospitals. The initiative is designed to harness the government’s monopsony power as a bulk buyer to negotiate lower prices and ensure a consistent supply of quality health commodities to areas in need.
“This is a major intervention that will reshape the domestic market by channeling the demand for quality pharmaceuticals in a way that reduces costs, enhances quality, and stimulates local manufacturing,” Pate said while briefing State House correspondents.
According to the Minister, Medipool’s scope will cover procurement planning, distribution monitoring, supply chain logistics, quality assurance, regulatory compliance, financial management, and contingency planning. The initiative is also expected to promote import substitution and support local manufacturers under a public-private partnership framework.
Additionally, Medipool has been vetted by the Infrastructure Concession Regulatory Commission and benchmarked against successful models in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.
Prof. Pate emphasized that the Medipool initiative is part of a wider strategy by the Tinubu-led administration to address the rising cost of pharmaceutical products in Nigeria—a problem also faced by developed countries like the United States.
“This initiative aligns with the presidential drive to unlock the healthcare value chain and supports the Executive Order signed by President Bola Tinubu in June 2024,” he said.
The executive order introduced incentives for local pharmaceutical production by removing tariffs on the importation of raw materials and empowering the Ministry to aggregate national demand for essential medicines.
In a related development, Prof. Pate also revealed that the FEC has approved a N2.3 billion contract for the procurement and installation of a cardiac catheterization machine at the Usmanu Danfodiyo University Teaching Hospital in Sokoto.
The equipment will provide advanced diagnostic and treatment services for serious heart conditions, including heart attacks and arrhythmias.
“With this new capability, the University Teaching Hospital in Sokoto will be able to serve not only the people of Sokoto State but also the wider Northwest region and the entire country,” Pate said.
The move is expected to significantly reduce outbound medical tourism and ensure more Nigerians can access critical cardiac care locally.
