FG launches Medipool to slash cost of medicines, boost local manufacturing

The Federal Executive Council (FEC) on Monday approved the groundbreaking Medipool initiative aimed at reducing the high cost of medicines and improving access to essential healthcare products across Nigeria, as part of a broader presidential effort to reform the country’s health system.

Briefing correspondents after the FEC meeting presided over by President Bola Tinubu at the Presidential Villa, the Coordinating Minister of Health and Social Welfare, Professor Ali Pate, announced the formal approval of Medipool – a group purchasing organisation designed to leverage the federal government’s buying power to negotiate lower prices for pharmaceuticals and healthcare products.

“Today, Council approved Medipool, a group purchasing organisation that will drive down the cost of essential medicines across Nigeria,” Pate said. “This is part of the President’s vision to ensure that Nigerians have access to affordable and quality healthcare, especially medicines, which have become increasingly expensive.”

Pate explained that the Medipool initiative is rooted in the Presidential Executive Order signed in June 2024, which provided a framework for unlocking Nigeria’s healthcare value chain.

That order removed tariffs on the importation of raw materials for local drug manufacturing and created incentives for pharmaceutical companies to produce domestically.

Medipool, according to the minister, will serve as a centralised procurement and supply platform.

It will aggregate national demand and channel it to local manufacturers, using the government’s monopsony advantage to secure competitive pricing.

The initiative will initially operate through the Basic Health Care Provision Fund and federal tertiary hospitals, with a view to expanding its reach nationwide.

“This mechanism will enable us to negotiate prices like a bulk buyer, ensure steady availability, improve quality, and stimulate local pharmaceutical production,” Pate added.

“It’s a public-private partnership that also includes quality assurance, regulatory compliance, financial management, and logistics support.”

The minister noted that Medipool has been vetted by the Infrastructure Concession Regulatory Commission (ICRC) and benchmarked against similar models in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.

In a separate development, the FEC also approved a ₦2.3 billion contract for the procurement and installation of a cardiac catheterisation laboratory at the Usmanu Danfodiyo University Teaching Hospital, Sokoto. The facility, which provides diagnostic and treatment services for heart conditions such as heart attacks and arrhythmias, is expected to significantly enhance cardiac care in Nigeria’s North-West zone.

“This will not only save lives but also help reduce medical tourism by offering critical cardiovascular services that previously required patients to travel abroad,” Pate said.

“These are only part of a series of targeted interventions that show the President’s focus on delivering better healthcare outcomes to Nigerians,” Pate affirmed.

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