The Pharmaceutical Society of Nigeria (PSN) has rejected the Federal Government’s proposed partnership with Medipool for the procurement and distribution of medicines to public health facilities, warning that transferring control of the pharmaceutical supply chain to a private company could weaken regulatory oversight and pose a threat to national security.
The society said the arrangement could disrupt cooperation among government agencies responsible for regulating medicine distribution, including the Pharmacy Council of Nigeria (PCN), the National Agency for Food and Drug Administration and Control (NAFDAC) and the National Drug Law Enforcement Agency (NDLEA).
The PSN President, Ayuba Tanko, expressed the concerns at the opening ceremony of the society’s 99th Annual National Conference, themed “IJELE 2026,” held at the International Convention Centre, Awka, Anambra State.
Tanko acknowledged that the proposed National Group Purchasing Organisation was designed to reduce the cost of essential medicines, prevent shortages, improve procurement transparency and support local pharmaceutical manufacturers.
However, he said its implementation had raised questions about compliance with the Public Procurement Act 2007, the PCN Act 2022 and the National Health Act 2014.
He maintained that medicines were not ordinary commodities and that the government must retain direct oversight of their procurement, storage, distribution and dispensing, particularly controlled drugs.
According to him, transferring the entire supply chain serving public health facilities to a private company contradicts the objective of strengthening government control over medicine management.
According to report the Federal Ministry of Health and Social Welfare and Medipool Nigeria Limited signed a Service Level Agreement aims at improving coordination and governance in the country’s medicine procurement and supply chain systems.
The agreement was part of efforts to enhance efficiency and streamline the sourcing and distribution of essential medicines nationwide.
Speaking further, the PSN president warned that placing a private company between the government and pharmaceutical regulators could undermine the cooperation required to monitor medicine distribution and enforce existing regulations.
He explained that government agencies currently collaborate through joint inspections, information sharing, enforcement activities and accountability mechanisms for controlled medicines.
Tanko argued that a private concessionaire might not automatically enjoy the level of cooperation and institutional goodwill extended by regulatory agencies to government-owned health institutions.
He also questioned Medipool’s regulatory standing, claiming that the company was registered as a retail pharmacy in Nigeria and had no verifiable track record as a medicine distributor or large-scale wholesaler.
He said the Federal Ministry of Health should have verified with the PCN whether the company possessed valid premises registration to operate as a wholesaler or distributor before entering into the agreement.
The PSN president further expressed concern over the absence of clear contractual provisions holding Medipool accountable for counterfeit medicines supplied through third parties.
Highlighting the scale of the counterfeit drug problem, he said NAFDAC destroyed fake and substandard products valued at approximately N1.5 trillion between June 2025 and June 2026 and secured 64 convictions.
He also recalled that regulatory authorities sealed 3,027 shops, warehouses and stores during enforcement operations at Idumota, Lagos, in February 2025.
Tanko insisted that medicine quality assurance should remain under government supervision and the responsibility of pharmacists accountable to public authorities, rather than being transferred to a private company.
He clarified that the society was not opposed to the Group Purchasing Organisation model but was concerned about the structure, implementation and legal basis of the proposed arrangement.
He noted that models in countries including Kenya, South Africa, Singapore and Saudi Arabia were considered in developing the Medipool proposal. However, he pointed out that some successful arrangements, such as Kenya’s KEMSA, operate as public institutions established by law rather than private concessions.
As an alternative, the PSN urged the Federal Government to accelerate the passage of the Federal Drug Revolving Fund and Drug Management Agency Bill to establish a clear legal framework for medicine procurement and distribution.
The society proposed that the agency should operate as the central purchasing and supply platform, while Medipool’s role, if retained, should be restricted to pooled price negotiations or competitively awarded, non-exclusive supply agreements.
It also recommended that government pharmacists retain custody and oversight of medicines in collaboration with the PCN, NAFDAC and NDLEA, particularly in the management of controlled substances.
Tanko stressed that procurement decisions, quality assurance, storage, dispensing and the handling of controlled medicines should remain the responsibility of government pharmacists within the Federal Civil Service.
The society further called on the Federal Government to recognise pharmaceutical insecurity as a national security concern and replace open drug markets with licensed Coordinated Wholesale Centres operating under strict regulatory supervision.
