Prof. Ali Pate, the Coordinating Minister of Health and Social Welfare, has announced that the Federal Executive Council (FEC) has approved Medipool, a group purchasing organization, to supply essential healthcare products nationwide.
Prof. Ali Pate made the announcement while briefing State House correspondents on Monday, following the sixth Federal Executive Council (FEC) meeting of the year.
He explained that the Medipool project would be implemented through the federal government’s Basic Health Care Provision Fund and, eventually, through federal tertiary hospitals, with the aim of negotiating lower prices for essential health products.
“It leverages the government’s monopsony power as a major buyer of healthcare commodities to secure reduced prices and direct those supplies to areas of need,” Pate said.
Scope and impact of the medipool initiative
According to him, the project’s scope includes procurement planning, distribution monitoring, supply chain and logistics management, quality assurance, and regulatory compliance. It will also support local manufacturers and promote import substitution.
Additionally, the initiative covers financial management and payment systems, capacity building and training, as well as contingency planning to ensure a steady supply of essential drugs through a public-private partnership framework.
Pate noted that Medipool had been vetted by the Infrastructure Concession Regulatory Commission and benchmarked against similar group purchasing organizations in countries such as Kenya, South Africa, Singapore, Saudi Arabia, and others.
“We believe this is a major intervention that will reshape the domestic market by channeling the demand for quality pharmaceuticals in a way that reduces costs, enhances quality, and stimulates local manufacturing,” he said.
Government’s broader efforts to cut pharmaceutical costs
Pate explained that for nearly a year and a half, the government had been exploring various strategies to reduce the cost of pharmaceutical products, as many Nigerians continue to suffer from rising prices.
He noted that the challenge is not unique to Nigeria, pointing out that even countries like the United States have issued Executive Orders aimed at lowering pharmaceutical costs.
According to him, the Medipool initiative aligns with the presidential drive to unlock the healthcare value chain and supports the Executive Order signed by President Bola Tinubu in June 2024.
“That Executive Order introduced incentives for local manufacturing by removing tariffs on the importation of raw materials, thereby encouraging local production,” Pate said.
Pate added that a key component of the Executive Order empowers the Ministry to shape the healthcare market by aggregating demand across Nigeria’s health sector and promoting local suppliers.
N2.3 billion cardiac equipment for Sokoto hospital
He also announced that the Federal Executive Council (FEC) approved a contract for the procurement and installation of a cardiac catheterization machine at the Usmanu Danfodiyo University Teaching Hospital in Sokoto, at a cost of N2.3 billion.
According to Pate, the equipment will enable the hospital to provide advanced diagnostic and treatment services for heart and blood vessel conditions, including heart attacks and irregular heart rhythms.
“These are highly complex and serious medical conditions. With this new capability, the University Teaching Hospital in Sokoto will be able to serve not only the people of Sokoto State but also the wider Northwest geopolitical zone and indeed, the entire country,” he said.
The Minister added that the move would save lives and also help reduce outbound medical tourism, enabling Nigerians to access critical cardiac services locally.
