Pharmacists Pick Holes in FG-Medipool MoU

.Say it violates Nigerian law

Pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) have picked holes in the Memorandum of Understanding (MoU) between the Federal Ministry of Health and Medipool, a private company, to supervise and control a centralised drug purchasing system for Nigeria’s health institutions.

The Ministry of Health had explained that the initiative was aimed to achieve both timely and strategic access to drugs by consumers of health in the country.

In a statement issued by the National Chairman of ACPN, Ambrose Ezeh and the National Secretary, Omokhafe Ashore, the association said the agreement was without due recognition of existing law governing the procurement, supply and distribution of drugs in the country, describing it as a “flagrant violation” of the Public Procurement Act 2007, the Pharmacists Council of Nigeria (PCN) Act 2022, and the National Health Act 2014.

ACPN argued that however well-intentioned the agreement may seem, it cannot override the rule of law.

“This move by the federal government is structured to achieve both timely and strategic access to drugs by consumers of health. In a sector burdened by fragmented procurement processes, poor coordination, and suboptimal value-for-money in medicine purchases, the creation of a central purchasing platform without due regard to law will never serve the intended merit to streamline procurement, enhance transparency, and improve access to essential medicines across the country,” ACPN argued.

According to ACPN, the FMoH and Medipool agreement is lacking in fundamentals of a well-thought-out policy and may undermine drug safety and the laws of the land on procurement and control and distribution of drugs in Nigeria.

“The is in breach of the provisions of the Public Procurement Act, which mandates open competitive bidding, transparency, prior budgetary appropriation, and issuance of a Certificate of No Objection before contract awards.”

ACPN further argued that conferring exclusive procurement rights on a private entity without clear evidence of competitive bidding undermines Section 16 of the Act — the very foundation of public sector procurement integrity.

The association contended that under the Pharmacists Council of Nigeria (PCN) Act and the Pharmacy Practice Act, only registered pharmacists are legally empowered to import, export, compound, dispense, sell, procure, and distribute medicines in Nigeria.

It said, “the two existing pharmacy laws vis the PCN Act 2022; the PPA Cap 535 LFN 1990, makes it very unambiguous that when it comes to drug matters in Nigeria, the Pharmacist is numero uno.

‘’The Federal Ministry of Health-Medipool agreement has the potential to further entrench unlawful and illegal propensities in the procurement of drugs in the health system.

‘’The provisions of Section 27(5) of the PCN Act, which prohibits the operations of private Pharmacy facilities from running Public Pharmacies in the Public health ecosystem forbids the latitude of influence of Medipool and such structures from operating in Public health institutions in Nigeria.

“Nothing showcases this reality more than the specific approbation in law vis the PCN Act, which confers legitimacy on registered Pharmacists to import, export, mix, compound, prepare, dispense, counsel, sell, procure, and distribute drugs, medicines and poison in Nigeria.”

ACPN reiterated the need to respect legal and institutional frameworks in Nigeria’s pharmaceutical supply chain. It recalled that the Federal Ministry of Health had approved the National Drug Distribution Guidelines in 2015 to sanitise private sector distribution.

It explained that a Federal Drug Management Agency, backed by law, is necessary to normalise the public sector supply chain, insisting that pharmacists must be involved in every stage of planning, implementation, and monitoring, in compliance with extant laws. 

The statement further reads, “Medipool is not a registered distributor of drugs in Nigeria, as the only registration associated with Medipool is its registration of a retail premises in a location in Lagos.

“Medipool, as a corporate entity, and any Pharmacist who works on its distribution project are in flagrant violation of the law.

“Based on extant laws, a Private Entity is not legitimately authorised to enter into a contractual arrangement that confers exclusive privilege to a Private Entity (Company or Individual) to supply drugs and medical consumables without competitive bidding in Nigeria.”

ACPN expressed deep concern over the overdraft issued to Medipool by the FMoH, contending that “plan to fund the Medipool concept through the Basic Healthcare Provision Fund (BHCPF) and expand its operations through the integration of procurement process gives cause for worries.

“To truly sharpen the domestic pharmaceutical market, the system must prioritise quality assurance, price benchmarking, and data-driven demand forecasting within lawful limits. In doing so, MediPool must reckon with existing approved structures of the federal government in terms of various existing guidelines, Acts of Parliaments and more legislative action.

Citing a similar initiative, the Drug Revolving Fund in federal health institutions, ACPN alleged that mismanagement and corruption in the system resulted in billions of naira debt. It advised government to strengthen and reform the Drug Revolving Fund system with pharmacists in charge, rather than introducing what it termed an unlawful model.

The body recalled a directive under former President Goodluck Jonathan in 2010, which affirmed the leading role of pharmacists in drug quantification, sourcing and quality control, even within the framework of the Public Procurement Act due to the specialised nature of medicines.

“The proposed objectives of MediPool – FmoH agreement — achieving competitive pricing, ensuring a consistent supply of essential medicines, and leveraging the purchasing power of the Federal Government cannot override adherence to the rule of law.”

It argued that the requisite advocacy for a more sustainable pharmaceutical supply chain, that led to the FMOH & SW’s approval of the National Drug Distribution Guidelines in 2015, which was designed to sanitise drug distribution channels in the private sector, will normalise the supply chain in the public sector through a Federal Drug Management Agency, especially one that is backed by law.

“The success of this initiative will depend heavily on the level of stakeholder engagement, especially with pharmacists and the pharmaceutical industry. Pharmacists must be integrally involved at every stage of the planning, implementation, and monitoring processes in tandem with extant laws.”  

Describing the MoU as invalid and a nullity within all known lawful contexts in Nigeria, ACPN called on the government to suspend the agreement.

“In view of the listed violations by the Federal Ministry of Health – Medipool Memorandum of Understanding, including the Public Procurement Act 2007, PCN Act 2022, and NH – 2014 Act, the MOU remains invalid and a nullity within all known lawful contexts in Nigeria.”

The body advised that “the way forward and the proactive thing to do by sensitive and responsive administration in the FMOH is to activate a DRF-formatted Act of parliament ultimately in the public interest,” the statement partly read.