The Federal Executive Council (FEC) has officially approved the establishment of MediPool, an innovative purchasing organization aimed at significantly enhancing the procurement of essential medicines and healthcare products across Nigeria. This strategic initiative will leverage the federal government’s considerable purchasing power to negotiate competitive pricing with suppliers, ensuring affordable access to vital healthcare resources for citizens.
Health Minister Prof Ali Pate announced the development, revealing that MediPool will operate as a public-private partnership. This collaborative approach will utilize the federal government’s Basic Healthcare Provision Fund and eventually expand its reach through federal tertiary hospitals across the country.
“MediPool will harness the monopsony power of the government as a substantial buyer of pharmaceuticals to negotiate lower prices and efficiently channel these products into the market,” Pate explained. “The organization’s scope encompasses procurement planning, distribution monitoring, supply chain and logistics management, quality assurance, and regulatory compliance.”
Importantly, MediPool will also focus on supporting local manufacturers, promoting import substitution, and enhancing financial management and payment systems. Capacity building and training initiatives will be integral to the organization’s mandate, ensuring a steady supply of essential drugs through effective public-private collaboration.
Pate emphasized that MediPool has undergone rigorous vetting through the Infrastructure Concession Regulatory Commission, drawing benchmarks from successful global group purchasing organizations in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.
“We believe this is a transformative intervention that will reshape the domestic pharmaceutical market,” Pate noted. “It aims to channel the demand for quality pharmaceuticals in a manner that lowers costs, improves product quality, and stimulates local manufacturing capabilities.”
For over a year and a half, the Nigerian government has explored various strategies to reduce the rising costs of pharmaceutical products, recognizing the financial strain on Nigerian citizens. Pate highlighted that the issue is not isolated to Nigeria. “Countries worldwide, including the United States, are taking significant steps to curb pharmaceutical costs. Just recently, U.S. President Donald Trump announced plans to sign an executive order to slash prescription drug prices by 30 to 80 percent,” he pointed out.
However, Pate also warned of potential global ramifications. If pharmaceutical companies react to U.S. price caps by limiting supply or raising prices elsewhere, it could negatively impact the availability and affordability of certain medications in Nigeria, particularly branded or specialty drugs.
In addition to the establishment of MediPool, the FEC approved a contract worth N2.3 billion for the procurement and installation of a state-of-the-art cardiac catheterization machine at Usman Danfodiyo University Teaching Hospital in Sokoto State. “This advanced medical equipment will significantly enhance the hospital’s capacity to diagnose and treat complex heart conditions, including heart attacks and irregular heart rhythms,” Pate stated, marking a pivotal investment in the nation’s healthcare infrastructure.
The establishment of MediPool, alongside the procurement of vital medical technology, marks a significant step forward in improving healthcare delivery in Nigeria and ensuring that citizens have access to essential medications and advanced medical care.