FG Launches MediPool Initiative to Slash Prices of Essential Medicines Nationwide
The Federal Executive Council (FEC) has approved the creation of MediPool, a groundbreaking national purchasing organisation designed to drastically reduce the cost of essential medicines and healthcare products across the country.
Announcing the development, Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, said MediPool will operate as a public-private partnership, strategically leveraging the federal government’s immense purchasing power to negotiate better deals with pharmaceutical suppliers.
“The goal is simple: use the government’s monopsony strength as a major buyer to push prices down and ensure the consistent availability of quality medicines,” Pate said. “This initiative will not only secure better pricing but also promote quality assurance, regulatory compliance, and support for local manufacturing.”
Funded initially through the federal government’s Basic Healthcare Provision Fund (BHCPF) and later through tertiary hospitals, MediPool is designed to address multiple gaps in the healthcare supply chain. Its wide scope covers procurement planning, distribution monitoring, logistics, import substitution, financial management, capacity building, and emergency preparedness.
The Infrastructure Concession Regulatory Commission (ICRC) has thoroughly vetted the model and benchmarked it against similar global organisations in Kenya, South Africa, Singapore, and Saudi Arabia, among others.
According to Pate, MediPool is a strategic response to the severe inflationary pressure on drug prices, which has worsened access to life-saving treatments for many Nigerians.
“For nearly 18 months, the government has been exploring solutions to counter the rising cost of pharmaceuticals. Nigerians are hurting, and we need to act decisively,” he said. “Even countries like the United States are enacting executive orders to force down drug prices. This is a global issue.”
In a related development, the FEC also approved a N2.3 billion contract for procuring and installing a cardiac catheterisation machine at the Usman Danfodiyo University Teaching Hospital in Sokoto. This state-of-the-art equipment will significantly enhance the hospital’s capacity to diagnose and treat serious heart conditions like heart attacks and arrhythmias.
