In a move aimed at lowering the cost of essential medicines and healthcare products across Nigeria, the Federal Government has approved the Medipool policy. This initiative, which was approved at the Federal Executive Council (FEC) meeting on Monday, May 12, 2025, is designed to harness the government’s purchasing power to negotiate lower prices for drugs and medical consumables.
The Coordinating Minister of Health and Social Welfare, Professor Ali Pate, explained that Medipool is a group purchasing organization that will work to create competitive pricing for healthcare products by consolidating the demand from various sectors, including basic healthcare centers and federal tertiary hospitals. The initiative seeks to leverage the government’s bulk buying power to negotiate lower prices for essential medicines, which will ultimately benefit Nigerians by ensuring better access to affordable healthcare.
“Today, council approved Medipool; it’s a group purchasing organisation for competitive pricing and to be supplier of essential medicines and healthcare products across Nigeria. It will be a mechanism for the Federal Government to intervene by negotiating lower prices for healthcare commodities,” Pate stated during the meeting.
The new initiative’s scope includes procurement planning, distribution monitoring, supply chain logistics, quality assurance, regulatory compliance, and support for local manufacturers. Pate emphasized that Medipool would also focus on promoting import substitution and ensuring that Nigerian manufacturers play a vital role in the provision of medical goods.
“The government will use its monopsony power, which means we will be the dominant buyer in the market, to negotiate lower prices and make essential medicines available at lower costs for all Nigerians,” Pate added. He also noted that the Medipool model was modeled after successful schemes in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.
The government aims to make medicines more affordable for Nigerians, particularly in rural and underserved areas, while also supporting local industries. This policy is expected to increase the availability of high-quality drugs at a more affordable price, benefiting both individuals and healthcare facilities nationwide.
In addition to Medipool, the FEC approved a N2.3 billion contract for the procurement of a state-of-the-art cardiac catheterization machine for Usmanu Danfodiyo University Teaching Hospital (UDUTH) in Sokoto. The new machine will enhance the hospital’s ability to diagnose and treat heart-related conditions, such as heart attacks and irregular heart rates, significantly improving healthcare access in Sokoto State and the wider North West region.
“This investment will save lives and reduce the need for Nigerians to travel abroad for medical care. With this capability, we are strengthening the healthcare system in Nigeria,” said Professor Pate.
This decision marks a significant step in the government’s ongoing efforts to improve healthcare services, reduce medical tourism, and increase accessibility to essential treatments for all Nigerians.
