The Federal Government of Nigeria is planning to lower cost of health care, to help make it more affordable to Nigerians amidst the hardship the new policies come with.
It say it will reduce costs by creating a pooled procurement platform for essential medicines. This was announced by Abdu Muktar at the Nigeria Economic Summit.
This initiative will consolidate resources for bulk purchasing, enhancing affordability and accessibility while aligning with an executive order to remove VAT and import tariffs on pharmaceuticals.
The government calls it a plan to improve access to essential medicines.
Basically, the pooled procurement of healthcare products will reduce costs and ensure that all Nigerians can access the medicines they need.
During the Nigeria Economic Summit, Abdu Muktar, the national coordinator of the Presidential Unlocking Healthcare Value-Chain Initiative, shared this news at the session entitled: “Is the Market Ready for Increased Local Manufacturing of Medicines?”.
Also, he explained that pooled procurement combines resources from various purchasing authorities to bulk-buy health products, thereby lowering prices significantly.
Furthermore, Muktar noted that the current healthcare procurement system in Nigeria is fragmented across federal, state, and private sectors.
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“The president has given us a go-ahead,” he stated.
Public Private Partnership Framework
According to him, the government is designing the platform using a Public-Private Partnership (PPP) framework, which experts tailored to Nigeria’s unique context.
This initiative also aligns with an executive order that removes VAT and import tariffs on pharmaceutical products, fostering a more competitive market.
Muktar emphasised that local production should not compromise quality.
“Local production in Nigeria should not mean poor quality products.”
Additionally, stakeholders at the summit highlighted the lack of pooled procurement as a significant challenge for Nigeria’s pharmaceutical sector.
Chukwudi Uche from CIPS Health Procurement Africa Project stressed the need for a coordinated procurement strategy.
He believes this will drop the cost of health care.
Also, he highlighted that the government’s role as the largest off-taker is crucial for driving down prices.
As the government moves forward, this initiative holds the promise of a more accessible and affordable healthcare system for all Nigerians.
