Victoria Mbangwa
The Federal Government of Nigeria is taking decisive steps to address the country’s growing healthcare challenges by launching an ambitious initiative to pool-procure essential medicines.
This move, announced by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, aims to ensure that public healthcare facilities are stocked with affordable, high-quality drugs, reducing both financial and physical burdens on Nigerians.
Speaking in Abuja at the Universal Health Coverage (UHC) Day event, Pate explained that the government is responding to the rising costs of healthcare, especially in the wake of inflation that has impacted food, drugs, and transport. Under the three-year Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), the government is prioritizing the bulk procurement of essential medicines, with a focus on making them both affordable and accessible in public health facilities across the country.
He said, “We recognise the increasing cost of health care (services and drugs), and to provide succour to the population in the short term, under the PVAC, we are in the process of pool-procuring essential medicines to ensure quality, availability, and affordability of these drugs within our public facilities.
“In the medium and long term, the local manufacturing of pharmaceutical products and commodities will help reduce costs and ensure availability within the country. This contributes to UHC’s goal of reducing the financial burden of health services.”
The minister highlighted that this strategy is part of a broader effort to achieve Universal Health Coverage (UHC) in Nigeria—an ambitious goal to ensure that all Nigerians have access to necessary health services without suffering financial hardship.
He noted that Nigerians currently spend over $70 per capita on healthcare, with government spending per capita at just $15.5, a stark imbalance that has left many people vulnerable to high out-of-pocket expenses for medical care.
“Over the last year, the prices of food, drugs, transportation, and subsistence have increased. All of which impact health seeking behaviour, health outcomes and cost of health services. There will be a cost to achieve the plans laid out. The required revenue must be raised responsibly without causing Nigerians additional pain.
“The latest National Health Account expenditure data by the Federal Ministry of Health and Social Welfare, and the National Bureau of Statistics estimate the total health expenditure per Nigerian at under $100. The government spends $15.5 per capita, and external development assistance accounts for $10.5 per capita. This means Nigerians spent over $70 per capita. There needs to be a radical shift in this distribution. We must transfer risks and financial burdens from individuals to governments and their implementation schemes.
“To ensure effective and efficient use of the resources, we have adopted the Sector-Wide Approach grounded in the following core principles to drive our vision and achieve our set goals: One Plan, One Budget, One report, One Conversation and One Voice. I am happy that all our state Governors have identified with our vision through the signing of the Compact
“As a government, we have mobilized and raised additional revenue for health. Mr. President has increased the allocation to the health sector, and development partners have committed additional external development assistance funds. As of today, We have mobilized >$3bn of additional funding (three years) through NHSRII SWAp, including $2.178bn confirmed external financing to be spent alongside government appropriation between 2024 and 2026 on the health of Nigerians. This will enable government and development partners to spend more while individual out-of-pocket expenditure is reduced.
“Mr. President and our governors recognise that indigent and vulnerable members of our society cannot afford to pay health insurance premiums. This is why the Federal Government established the basic healthcare provision fund and the vulnerable group funds. Through the BHCPF, ₦45.9bn has been disbursed through direct financing to facilities already this year. The Equity funds by State Governments support care for its indigenes who are most in need. These funds complement the social sector interventions targeting these groups.
“Through the SWAp Coordinating Office, we have supported the 36 states +FCT in developing their Annual Operational Plans. This is the first time states have completed their AOP before the budgetary cycle. States AOPs were developed in alignment with the sector’s key priorities. This will support states to align their resources with the key health priorities of their states and the country.
“As a proactive government, Mr. President has directed that we strategically purchase health for target groups whose insurance premiums are high due to already existing morbidity from disease. These include women who suffer from vesicovaginal fistula and investments to set up cancer treatment centers across the country. As of October 2024, we had successfully undertaken 879 obstetric fistula repairs across 19 centers in the country, with a target of 2,500 before the year ends.
“This has restored the quality of lives of our women and their dignity. This is the type of health system the Tinubu administration wishes to hand over to our children. One that is resilient and provides for all, without regard to socio-economic standing,” the minister stated.
