The Federal Executive Council (FEC) has approved the creation of Medipool, a new group purchasing organization designed to secure essential medical products at reduced prices across Nigeria. The Coordinating Minister of Health and Social Welfare, Professor Muhammad Ali Pate, made the announcement on Monday, May 12, 2025, after the sixth FEC meeting of the year.

Speaking to State House correspondents in Abuja, Prof. Pate emphasized that Medipool will function as a centralized purchasing platform under the federal government’s Basic Health Care Provision Fund (BHCPF) and, over time, through tertiary hospitals across the country.

“This initiative utilizes the government’s monopsony power — being the largest single buyer of health commodities — to negotiate lower prices and ensure targeted delivery of essential products to areas most in need,” Pate explained.

Broad Scope and Strategic Impact of Medipool

The Medipool program will not merely handle bulk procurement; it will also play a vital role in transforming Nigeria’s healthcare delivery infrastructure. According to Pate, the initiative includes comprehensive components such as:

• Procurement planning and supply chain oversight

• Real-time distribution and logistics management

• Quality control and regulatory compliance

• Support for local pharmaceutical manufacturers and import substitution

• Integrated financial management and payment systems

• Training programs and capacity building

• Contingency measures for uninterrupted supply chains

By consolidating public demand and creating a sustainable purchasing framework, the federal government expects Medipool to reduce healthcare costs while enhancing availability and reliability of critical drugs and equipment.

International Benchmarking and Public-Private Model

Medipool is modeled after successful group purchasing systems in countries like Kenya, South Africa, Singapore, and Saudi Arabia. Prof. Pate noted that the Infrastructure Concession Regulatory Commission had thoroughly vetted the project to ensure its viability.

“This is a significant policy intervention,” he said, “one that will reshape the local pharmaceutical market by directing demand toward quality-assured products while stimulating domestic manufacturing.”

The initiative operates under a public-private partnership (PPP) framework, ensuring private sector engagement for improved efficiency and responsiveness. Officials believe that this structure will help maintain a stable supply chain even during crises, and enhance Nigeria’s health system resilience.

Tackling the Soaring Cost of Medicines

Prof. Pate revealed that for nearly 18 months, the federal government has explored various approaches to reduce the escalating cost of medicines and healthcare supplies, which continue to burden millions of Nigerians.

He acknowledged that the issue is not unique to Nigeria, highlighting that even advanced economies like the United States have introduced Executive Orders to rein in high pharmaceutical costs. Medipool, he explained, aligns with a broader national vision to “unlock the healthcare value chain” as directed by President Bola Ahmed Tinubu.

Policy Backing from Presidential Executive Order

Pate linked Medipool’s strategy to a June 2024 Executive Order issued by President Tinubu, which introduced sweeping reforms aimed at encouraging local pharmaceutical production. That directive eliminated tariffs on imported raw materials, offering incentives for domestic drug manufacturers to scale up operations.

“One of the order’s core provisions enables the Ministry of Health to shape Nigeria’s healthcare market by pooling demand across the public sector and directing it toward local producers,” Pate noted. “Medipool will serve as the practical mechanism to operationalize that vision.”

N2.3 Billion Investment in Cardiac Care in Sokoto

In a related development, Pate announced that the Federal Executive Council also approved a major health infrastructure investment — the procurement and installation of a cardiac catheterization machine at Usmanu Danfodiyo University Teaching Hospital (UDUTH) in Sokoto.

The contract, valued at N2.3 billion, will provide the facility with the capability to diagnose and treat a range of complex cardiovascular conditions, including:

• Heart attacks

• Irregular heart rhythms

• Blood vessel blockages

According to the minister, this move will not only enhance the quality of specialist care available in Sokoto but also position the hospital as a regional hub for cardiac treatment across the Northwest geopolitical zone.

“With this advanced technology, the teaching hospital can deliver life-saving care to patients in need, reducing the necessity of traveling abroad for treatment,” Pate said.

Reducing Medical Tourism Through Local Capacity

The Federal Government aims to use initiatives like Medipool and tertiary hospital upgrades to reverse Nigeria’s growing dependence on outbound medical tourism. Each year, thousands of Nigerians travel overseas for specialist treatment, costing the country billions of naira in lost capital.

By investing in local equipment, skilled personnel, and drug availability, the government hopes to make comprehensive healthcare more accessible and affordable within Nigeria’s borders.

“We are focused on building domestic capacity so that Nigerians can receive high-quality treatment at home — from cardiovascular diseases to essential drug access,” Pate stated.

Conclusion: A Turning Point for Nigeria’s Health Sector

The launch of Medipool, combined with strategic investments like the N2.3 billion cardiac equipment in Sokoto, signals a renewed push by the Tinubu administration to overhaul the country’s healthcare infrastructure and pharmaceutical supply chain.

By leveraging economies of scale, supporting local manufacturing, and investing in specialized medical services, the Federal Government intends to make healthcare both affordable and sustainable for Nigerians.

If successfully implemented, these initiatives could mark a critical turning point in Nigeria’s effort to achieve universal health coverage and reduce the burden of disease nationwide.