The Federal Government has approved the creation of MediPool, a new group purchasing organisation (GPO) aimed at reducing the cost of drugs and medical consumables in Nigeria.
Professor Ali Pate, Coordinating Minister of Health and Social Welfare, announced the approval after the Federal Executive Council meeting on Monday, May 12. The meeting was chaired by President Bola Tinubu at the State House in Abuja.
Pate described MediPool as a nationwide supplier of essential medicines and healthcare products. He said the initiative would allow for competitive pricing by consolidating demand and using government-led bulk purchasing.
Bulk Purchasing to Drive Down Costs
Pate explained that MediPool would operate through the Basic Healthcare Provision Fund and federal tertiary hospitals. By acting as a single large buyer, the government can negotiate significantly lower prices for drugs and consumables.
“This platform enables us to channel demand through a unified system. That way, we can reduce costs while improving access to quality medicines,” Pate stated.
He noted that MediPool would also support procurement planning, supply chain coordination, logistics, quality control, and regulatory compliance. Moreover, it will strengthen local manufacturing and promote import substitution. It includes financial management, digital payment systems, and training to ensure continuity in drug supply.
According to Pate, MediPool was benchmarked against similar models in Kenya, South Africa, Singapore, and Saudi Arabia. It also received clearance from the Infrastructure Concession Regulatory Commission (ICRC).
“We believe this intervention will reshape Nigeria’s pharmaceutical market. It will lower prices, enhance quality, and stimulate domestic production,” he said.
This move aligns with recent policies encouraging local production. In March, the Nigeria Customs Service began implementing VAT and import duty exemptions on raw materials for drug manufacturing. The decision followed a presidential order to boost local production of healthcare products.
Furthermore, in June 2024, President Tinubu signed an Executive Order to support domestic production of pharmaceuticals, diagnostics, and medical devices.
Coincidentally, Nigeria’s announcement came shortly after former U.S. President Donald Trump signed an executive order on May 11. His directive targets a 30% to 80% reduction in prescription drug prices in the U.S.
Trump, via TruthSocial, criticised the high cost of medications in America. He pointed out that U.S. citizens pay five to ten times more for the same drugs than people in other countries.
