The Federal Executive Council (FEC) has approved Medipool, a group purchasing organisation, as the supplier of essential healthcare products across Nigeria, according to the Coordinating Minister of Health and Social Welfare, Ali Pate. This decision was announced during a briefing to State House Correspondents following the sixth FEC meeting of the year. The Medipool project will be executed through the federal government’s Basic Health Care Provision Fund and eventually through federal tertiary hospitals to negotiate lower prices for essential healthcare products.

Mr. Pate explained that leveraging the government's purchasing power would enable them to negotiate lower prices and channel commodities to areas of need. The scope of Medipool includes procurement planning, distribution monitoring, supply chain and logistics management, quality assurance, regulatory compliance, and support for local manufacturers. It also covers import substitution, financial management and payment systems, capacity building and training, and contingency planning to ensure a steady availability of essential drugs through public-private partnerships.

Medipool has been vetted through the Infrastructure Concession Regulatory Commission and benchmarked against global group purchasing organizations in countries such as Kenya, South Africa, Singapore, and Saudi Arabia. The aim is to shape the domestic market by channeling the demand for quality pharmaceuticals in a way that lowers costs, improves quality, and stimulates local manufacturing.

The government has been exploring ways to reduce the costs of pharmaceutical products for about a year and a half, recognizing that rising costs are affecting Nigerians. This initiative aligns with the presidential initiative to unlock the healthcare value chain and the Executive Order signed in June 2024, which provides incentives for local manufacturing by removing tariffs on the import of raw materials. This measure encourages local suppliers by aggregating demand in the Nigerian health space.

In addition to Medipool, FEC approved the award of a contract for the procurement and installation of a cardiac categorisation machine at the Usmanu Danfodiyo University Teaching Hospital, Sokoto, at the cost of N2.3 billion. This equipment will enable the university teaching hospital to provide diagnosis and treatment services for heart and blood vessel problems, heart attacks, and irregular heart rates.

The cardiac categorisation machine will enhance the hospital’s capabilities to serve the population in Sokoto State and the North West geopolitical zone, contributing to reversing outbound medical tourism by providing services previously inaccessible in Nigeria.