FG Establishes Organisation to Reduce Drug Prices, Shares Details

• The Federal Executive Council has approved the establishment of MediPool, an agency aimed at reducing drug costs and improving the availability of medicines nationwide
• Muhammad Ali Pate, Minister of State for Health and Social Welfare, announced this on Monday after the FEC meeting
• This was after US President Donald Trump decided on reducing prices of prescription drugs and pharmaceuticals

Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.

State House, Abuja - The Federal Executive Council (FEC) has approved the establishment of MediPool, a purchasing organisation.

Muhammad Ali Pate, Minister of State for Health and Social Welfare, confirmed this and stated that the organisation will offer competitive pricing and supply essential medicines and healthcare products across Nigeria.

As reported by The Cable, the minister noted that MediPool will function as a public-private partnership, leveraging the federal government’s significant purchasing power to negotiate better prices from suppliers.

Continuing, Pate added that it would be established through the federal government’s basic healthcare provision fund and eventually through federal tertiary hospitals.

“So it’s using the monopsony power of government as a large buyer of those commodities to negotiate lower prices and then channel those commodities,” he said.

MediPool: Nigeria adopts global model

Speaking further, Pate said Medipool has been vetted through the infrastructure concession regulatory commission and benchmarked with other global group purchasing organisations in Kenya, South Africa, Singapore, Saudi Arabia, and many other countries.

He added that for almost a year and a half, the government had been trying different ways to reduce the costs of pharmaceutical products because Nigerians were hurting from rising costs.

“It’s not limited to Nigeria. As you may be aware, even countries as far as the United States are placing executive orders to reduce the cost of pharmaceuticals,” he said.

On Monday, May 12, US President Donald Trump said he would sign an executive order reducing prices of prescription drugs and pharmaceuticals by 30 to 80 percent.

If pharmaceutical companies respond to US price caps by limiting supply or raising prices elsewhere, this could disrupt the availability or affordability of certain drugs in Nigeria, particularly branded or specialty medicines.

Read more health-related articles here:

• Tinubu’s govt mentions number of doctors who have japa and how much Nigeria has lost over 5 years
• Tinubu’s health minister shares what president is doing to stop Nigeria from dividing
• Why other countries recruit Nigerian doctors, nurses, Tinubu’s minister explains
• Tinubu's govt approves retirement age for doctors, healthcare workers

FG suspends import duties, VAT on medical supplies

Meanwhile, Legit.ng reported that President Bola Tinubu has signed an executive order suspending import duty and VAT on medical supplies.

The move is to reduce the cost of locally made medical supplies such as needles and syringes.

This comes amid several pharmaceutical companies announcing that they are ceasing operations in Nigeria.

Proofreading by Nkem Ikeke, copy editor at Legit.ng.

Source: Legit.ng