The federal government has approved the establishment of a new group purchasing organisation named Medipool. This organisation aims to reduce the cost of essential medicines and expand access to quality healthcare across Nigeria.
Coordinating Minister of Health and Social Welfare, Prof. Ali Pate, disclosed this to State House correspondents on Monday after the Federal Executive Council (FEC), presided over by President Bola Tinubu, at the Presidential Villa.
He said the move aligns with President Tinubu’s directive to ensure lower pharmaceutical prices and boost local drug manufacturing.
Pate said, “This has been work we’ve undertaken for many months. In fact, for almost a year and a half, the government has been trying various ways to reduce drug prices. Nigerians have been hurting due to rising pharmaceutical costs, a global challenge.”
He recalled that in June 2024, President Tinubu signed an Executive Order providing tax and tariff exemptions for importing raw materials used in drug production to encourage local manufacturing.
The Medipool initiative builds on that effort by aggregating national demand and using the government’s purchasing power to negotiate competitive prices with suppliers.
Medipool is a group purchasing organisation that will operate as a public-private partnership. It will serve as a national platform to supply essential medicines and healthcare products, beginning with the Basic Health Care Provision Fund and eventually extending to federal tertiary hospitals,” the minister explained.
Medipool‘s scope includes procurement planning, supply chain logistics, quality assurance, regulatory compliance, and financial management.
Pate emphasised that the platform had been benchmarked against similar models in Kenya, South Africa, Singapore, and Saudi Arabia and vetted by the Infrastructure Concession Regulatory Commission (ICRC).
“This is a significant intervention that will shape Nigeria’s domestic pharmaceutical market, lower costs, ensure availability of high-quality drugs, and stimulate local production,” he said.
In a separate development, the FEC also approved a contract worth N2.3 billion to procure and install a cardiac catheterisation machine at the Usmanu Danfodiyo University Teaching Hospital in Sokoto.
Pate noted that the advanced medical equipment will improve the diagnosis and treatment of severe cardiovascular conditions such as heart attacks and irregular heart rates, serving not only Sokoto State but the entire North-West region.
“This investment will save lives, reduce the need for outbound medical tourism, and strengthen tertiary healthcare delivery in Nigeria.
It is part of President Tinubu’s broader health sector transformation agenda, which includes modernising teaching hospitals and training capacity,” the minister said.
He added that the cardiac lab is one of several ongoing federal interventions to expand high-quality, specialised care nationwide.
