FG operationalises Medipool as National GPO, to reduce cost of medicines

The Federal Government of Nigeria has signed a Memorandum of Understanding to operationalise Medipool as the country’s National Group Purchasing Organisation (GPO), which will coordinate bulk purchases of medicines to lower costs.

This is according to a media brief issued by the Federal Ministry of Health and Social Welfare on 16 February 2026.

This is a move aimed at reducing the cost of medicines and improving access to health commodities nationwide.

What the Ministry said 

According to the Federal Ministry of Health and Social Welfare, operationalising Medipool will allow for bulk purchasing, price negotiation, and improved quality assurance across Nigeria’s health supply chain.

The scheme aligns with key national priorities, including the Basic Healthcare Provision Fund, the Presidential Initiative to Unlock the Healthcare Value Chain, and the National Health Supply Chain Transformation Plan.

• The Coordinating Minister of Health and Social Welfare, Muhammad Ali Pate described the initiative as a strategic shift in Nigeria’s approach to procuring medicines.

• “The operationalisation of Medipool represents a strategic shift in how Nigeria procures and delivers essential medicines. 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,” he said

Backstory

The operationalisation of Medipool follows the Federal Executive Council’s approval of the initiative in May 2025. Prof. Ali Pate, explained that the project will initially operate through the Basic Health Care Provision Fund and federal tertiary hospitals.

• The initiative aligns with the presidential drive to unlock the healthcare value chain and supports the Executive Order signed by President Bola Tinubu in June 2024, which incentivises local manufacturing by removing tariffs on imported raw materials.
• According to Prof. Pate, Medipool leverages the government’s position as a major buyer of healthcare commodities to negotiate lower prices and direct supplies to areas of need. The initiative covers procurement planning, distribution monitoring, supply chain and logistics management, quality assurance, regulatory compliance, and financial management.
• The project was vetted by the Infrastructure Concession Regulatory Commission and benchmarked against similar group purchasing organisations in countries such as Kenya, South Africa, Singapore, and Saudi Arabia.

More insights 

Medipool is expected to leverage pooled demand to negotiate better prices with manufacturers and suppliers, while monitoring quality standards across the supply chain. The initiative also supports the government’s target of increasing local pharmaceutical production to meet a larger share of domestic demand.

Officials say the GPO will improve procurement transparency, reduce inefficiencies in medicine distribution, and ensure essential health commodities reach health facilities more reliably. The system is also designed to strengthen financial protection for patients by lowering out-of-pocket expenses on medicines.

What you should know 

The cost of medicines in Nigeria has escalated sharply in recent years. Nairametrics reports that essential drugs such as anti-malaria medications rose by over 135% and insulin and some antibiotics by up to 157% in late 2024, largely driven by inflation and the weakening naira.

These rising costs have placed additional pressure on hospitals, prompting many to increase service tariffs and health insurance premiums, with some HMOs raising annual plan costs by nearly 60 percent between 2024 and 2025.

Prescription medicines and healthcare services have generally become more expensive, often outpacing general inflation, while hospital admissions, diagnostic tests, and other essential services have also seen significant price increases.

FG operationalises Medipool as National GPO, to reduce cost of medicines - Nairametrics