Federal Executive Council Approves Medipool To Cut Pharmaceutical Costs
The Federal Executive Council (FEC) has given approval for the creation of a medipool system designed to lower drug prices, enhance the availability of medicines, and support the growth of local pharmaceutical manufacturing.
This initiative involves bulk purchasing of Nigerian-made medications and diagnostic kits, which is expected to lower prices and make essential drugs more affordable and accessible to Nigerians, while also encouraging the growth of the domestic pharmaceutical industry.
The approval aligns with broader government efforts, including an executive order to remove VAT and import tariffs on pharmaceutical inputs, to support local production and ensure fair pricing of essential medicines.
Minister of Health and Social Welfare, Professor Ali Pate, made these known on Monday after the Federal Executive Council meeting presided over by President Bola Tinubu,at the Council Chambers, State House Abuja .
The Minister added that the move aligns with President Tinubu’s directive to ensure lower pharmaceutical prices and boost local drug manufacturing.
“this has been work we’ve undertaken for many months. In fact, for almost a year and a half, the government has been trying various ways to reduce drug prices. Nigerians have been hurting due to rising pharmaceutical costs, which is a global challenge.”
He recounted that in June 2024, President Tinubu signed an Executive Order providing tax and tariff exemptions for the import of raw materials used in drug production to encourage local manufacturing.
“Medipool is a group purchasing organization that will operate as a public-private partnership. It will serve as a national platform to supply essential medicines and healthcare products, beginning with the Basic Health Care Provision Fund and eventually extending to federal tertiary hospitals,” the minister explained.
The scope of Medipool includes procurement planning, supply chain logistics, quality assurance, regulatory compliance, and financial management.
The Minister stressed that the platform had been modelled after similar initiatives in Kenya, South Africa, Singapore, and Saudi Arabia, and vetted by the Infrastructure Concession Regulatory Commission (ICRC).
“This is a major intervention that will shape Nigeria’s domestic pharmaceutical market, lower costs, ensure availability of high-quality drugs, and stimulate local production,” he said.
In another development, FEC also approved a contract worth N2.3 billion for the procurement and installation of a cardiac catheterisation machine at the Usmanu Danfodiyo University Teaching Hospital in Sokoto.
Professor Pate noted that the advanced medical equipment will improve the diagnosis and treatment of serious cardiovascular conditions such as heart attacks and irregular heart rates, serving not only Sokoto State but the entire North-West region.
“This investment will save lives, reduce the need for outbound medical tourism, and strengthen tertiary healthcare delivery in Nigeria.
It is part of President Tinubu’s broader health sector transformation agenda, which includes modernizing teaching hospitals and training capacity,” the Health minister, added.
He further stated that the cardiac lab is one of several ongoing federal interventions aimed at expanding high-quality, specialized care across the country.
