• The federal government signed a memorandum on Feb. 16, 2026 to establish Medipool as a national group purchasing organization for medicines.
• Authorities aim to cut treatment costs and improve supply chain efficiency after essential drug prices rose by up to 78% in the private sector.
• The government targets 70% local pharmaceutical production by 2030 and 60% local vaccine production by 2040 under its healthcare value chain initiative.

The Federal Government of Nigeria signed a memorandum of understanding on Monday, February 16, 2026 to formally establish Medipool as a national group purchasing organization for medicines.

The Ministry of Health said the agreement marks a decisive step to reduce treatment costs, strengthen supply chain efficiency and expand access to quality health products for Nigerians.

Media Brief

FG Moves to Lower Cost of Medicines, Signs MoU to Operationalise Medipool as National GPO
Abuja,Nigeria | 16 February 2026

The Federal Government of Nigeria, through the Federal Ministry of Health and Social Welfare, today signed a Memorandum of Understanding (MoU)… pic.twitter.com/JMQsu8s9kL

— Federal Ministry of Health, NIGERIA (@Fmohnigeria) February 16, 2026

Medipool will aggregate demand for pharmaceutical products and medical supplies across public and private healthcare facilities. The structure will enable bulk purchasing, improve price negotiations and enhance quality assurance across the national supply chain.

“The operationalization of Medipool represents a strategic shift in how Nigeria procures and distributes essential medicines,” said Muhammad Ali Pate, Coordinating Minister of Health and Social Welfare.

Rising Price Environment

Nigeria has faced sharp increases in pharmaceutical prices in recent years. Data published by the National Library of Medicine show that prices of certain essential medicines, including antibiotics, rose by 78% in the private sector and 46% in the public sector between the first quarter of 2023 and the first quarter of 2024.

Professor Mojisola Adeyeye, Director General of the National Agency for Food and Drug Administration and Control (NAFDAC), said naira devaluation largely explains the high cost of local pharmaceutical production. She said the elevated exchange rate increases the cost of imported raw materials and equipment. She added that limited access to U.S. dollars has driven up the price of imported treatments. She also noted that two multinational companies exited the market.

In response, the government is advancing measures to revive local pharmaceutical manufacturing. In 2023, authorities launched the Presidential Initiative on Unlocking Healthcare Value Chains (PVAC). The initiative seeks to transform the national healthcare ecosystem by expanding domestic pharmaceutical production. Authorities aim to meet 70% of national pharmaceutical demand through local production by 2030 and 60% of vaccine demand by 2040.

Therefore, the rollout of Medipool strengthens Nigeria’s broader healthcare reform agenda. Authorities aim to build a more resilient, transparent and efficient system that delivers better health outcomes and financial protection for the population.

Lydie Mobio