Reps probe N48bn debt owed by federal health institutions

The House of Representatives unveiled plans on Wednesday to investigate the activities of Federal Health Institutions regarding the alleged N48 billion owed to pharmaceutical firms operating across the country.

The resolution was passed following the adoption of a motion titled ‘Collapse of Revolving Funds and indebtedness of Federal Health Institutions to Pharmaceutical Firms in Nigeria,’ sponsored by Hon. Adedayo Samuel Adesola, Hon. Amos Magaji Gwamna, and Hon. Regina Akume.

In his lead debate, Hon. Adesola, citing a media report, observed that the Drug Revolving Funds scheme, created as a result of the Essential Drug Act, aimed to address the perennial challenge of drug stockouts in public health institutions.

“The House also notes that while the Drug Revolving Funds scheme was initially successful, it has been undermined by hospital management, resulting in pharmaceutical firms being owed N18 billion in 2021 and N30 billion in 2023;

ALSO READ: Reps task FG on provision of free cancer treatment nationwide

“The House is aware of the Drugs Revolving Funds (DRF), a National Contingency Plan designed to tackle the menace of stockouts in public pharmacy departments and ensure that Federal Health Institutions are adequately stocked with essential drugs for medically challenged Nigerians.

“The House is cognizant that a well-run Drugs Revolving Funds (DRF) tackles the issue of stockouts, as seen in the DRF scheme of the National Orthopedic Hospital, Igbobi (NOHI), which was a flagship over a decade ago and resulted in a pharmacy house worth over N300 million in 2014 without the collapse of the DRF program because the hospital management at the time provided necessary cooperation.

“The House is worried that this commendable initiative has been abused over time through the accumulation of unpaid supplies from pharmaceutical firms under this funding arrangement, leading to its eventual collapse.

“The House is concerned that the Pharmaceutical Society of Nigeria (PSN) has called on the past administration to probe the activities of the National Hospital, Igbobi affair to revive the Drug Revolving scheme.

“The House is aware that unless the collapse of the drug revolving fund is urgently addressed, further supplies of these essential drugs to Federal Health Institutions will remain a distant possibility, thereby increasing pressure on the already struggling healthcare system,” he noted.

To this end, the House mandated its Committee on Health Institutions to investigate the collapse of the drug revolving funds scheme, verify facts, and report back within four weeks for further legislative actions.