In a significant step towards improving healthcare access and affordability, the Federal Executive Council (FEC) has endorsed Medipool, a Group Purchasing Organisation (GPO), as the designated supplier of essential healthcare products across Nigeria.
The approval was announced by Professor Muhammad Ali Pate, Coordinating Minister of Health and Social Welfare, during a press briefing following the sixth FEC meeting of 2025. The move is a core component of the Presidential Initiative to Unlock the Healthcare Value Chain, aimed at lowering pharmaceutical costs, improving supply chain efficiency, and stimulating local production.
According to the minister, Medipool will operate under a Public-Private Partnership (PPP) model, aggregating national demand through the Basic Healthcare Provision Fund (BHCPF) and federal tertiary hospitals. This consolidated procurement strategy will leverage the monopsony power of government—as the country’s largest healthcare buyer—to negotiate significantly lower prices for pharmaceuticals and medical supplies.
“The Medipool platform will streamline procurement planning, supply chain logistics, quality control, and regulatory compliance. It will also promote local manufacturing and import substitution, ensuring long-term resilience and sustainability,” Pate explained.
The scope of Medipool’s mandate includes:
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Centralized procurement and price negotiation;
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Distribution monitoring and logistics;
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Support for local manufacturers via market shaping;
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Integration of payment systems and financial transparency;
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Capacity building, training, and contingency planning to ensure uninterrupted supply.
The minister noted that the project has undergone rigorous evaluation by the Infrastructure Concession Regulatory Commission (ICRC) and is benchmarked against successful GPO models in Kenya, South Africa, Singapore, and Saudi Arabia.
“This is a structural intervention to reshape Nigeria’s healthcare market. By aggregating demand and stabilizing prices, we can improve quality, reduce costs, and stimulate domestic pharmaceutical manufacturing,” he said.
The initiative aligns with the Executive Order signed by President Bola Tinubu in June 2024, which introduced incentives for local pharmaceutical manufacturers—including tariff exemptions on imported raw materials. The broader aim is to address the rising cost of medicines and reverse Nigeria’s overreliance on imports, which has placed a financial burden on millions of citizens.
Pate emphasized that the federal government had spent the past 18 months exploring viable strategies to reduce pharmaceutical costs, noting that this issue is not unique to Nigeria. Even developed countries like the United States are enacting executive measures to contain escalating drug prices.
In a related development, the FEC also approved a ₦2.3 billion contract for the procurement and installation of a cardiac catheterization machine at Usmanu Danfodiyo University Teaching Hospital, Sokoto. The equipment will enhance the hospital’s capacity to diagnose and treat complex cardiovascular conditions such as heart attacks and arrhythmias.
“This is a life-saving intervention for Sokoto State and the broader North-West region. It will also reduce outbound medical tourism by enabling more Nigerians to receive advanced cardiac care within the country,” Pate added.
These decisions mark a deliberate effort by the federal government to strengthen healthcare infrastructure, improve clinical outcomes, and ensure that healthcare delivery is both affordable and accessible—in line with national development and public health goals.
