The Federal Government has approved a new policy, Medipool, aimed at reducing the cost of essential drugs and medical consumables across Nigeria through pooled procurement and competitive pricing.

The decision was made during Monday’s Federal Executive Council (FEC) meeting, chaired by President Bola Tinubu at the Presidential Villa, Abuja.

Coordinating Minister of Health and Social Welfare, Professor Ali Pate, described Medipool as a group purchasing organisation that consolidates demand from primary healthcare centres and federal tertiary hospitals. This approach will leverage government’s purchasing power to negotiate lower prices.

“Medipool will use the government’s monopsony power to negotiate lower costs for essential medicines and healthcare products,” Pate said.

The initiative will span procurement planning, logistics, quality assurance, regulatory compliance, and capacity building. It also aims to support local pharmaceutical manufacturers, promote import substitution, and ensure the steady supply of affordable, high-quality medicines through public-private partnerships.

According to Pate, the Medipool model was inspired by similar schemes in Kenya, South Africa, Singapore, and Saudi Arabia.

Additionally, the FEC approved a contract worth N2.3 billion for the procurement of a state-of-the-art cardiac catheterisation machine for Usmanu Danfodiyo University Teaching Hospital (UDUTH), Sokoto.

The machine will enhance the hospital’s capacity to diagnose and treat heart diseases, including heart attacks and arrhythmias.

“The facility will serve the people of Sokoto State and the entire North West region. It will save lives and help reduce medical tourism,” Pate said.