In a major move to crash the soaring cost of healthcare, the Federal Government (FG) signed a Memorandum of Understanding (MoU) to operationalize Medipool as the nation’s National Group Purchasing Organisation (GPO).
The agreement, signed yesterday, marks the transition of Medipool from a concept approved by the Federal Executive Council (FEC) in 2025 to a fully functional platform designed to aggregate the buying power of both public and private health facilities.
Medipool is built on the economic principle of demand aggregation.
By pooling together orders for pharmaceuticals and medical supplies from across the country, the government aims to negotiate competitive pricing, using Nigeria’s large population as leverage to secure lower costs from both global and local manufacturers.
The initiative also seeks to guarantee quality by centralising the quality assurance process, ensuring that only safe and standard medicines enter the national supply chain.
Additionally, Medipool is designed to boost the local pharmaceutical industry by providing a predictable market for Nigerian companies, encouraging them to scale up production to meet domestic demand.
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The Coordinating Minister of Health and Social Welfare, Ali Pate, described the signing as a strategic shift in Nigeria’s healthcare delivery.
“By pooling demand, strengthening local manufacturing, and improving supply chain transparency, we are lowering costs, expanding access, and building a more resilient health system that protects both the health and finances of Nigerians,” Pate stated.
The initiative aligns with several high-priority national programmes.
The Basic Healthcare Provision Fund (BHCPF) aims to ensure affordable drugs reach primary health centres. The Presidential Initiative to Unlock the Healthcare Value Chain (PVAC) is focused on reducing dependency on imported medical supplies.
Meanwhile, the National Health Supply Chain Transformation Plan seeks to modernise the logistics and delivery of health commodities.
The signing ceremony featured key leaders from Nigeria’s health reform architecture, including Muyi Aina (NPHCDA), representatives from the Sector-Wide Approach (SWAp) Coordination Office led by Muntaqa Sadiq and the PVAC team.
This “whole-of-government” approach ensures that federal and state agencies are synchronized in their effort to make essential medicines available and affordable for every citizen.
Medipool GPO helps reduce costs, resulting in lower out-of-pocket expenses for patients. It strengthens supply chain stability, minimising stock-outs and shortages of essential drugs.
The platform promotes transparency, improving monitoring and accountability in procurement processes.Medipool GPO supports economic growth by contributing to the 70% local manufacturing target.
This reform is expected to provide immediate financial relief to millions of Nigerians currently struggling with the rising costs of pharmaceutical products.
