From the 14th to the 16th of October 2024, leaders, policymakers, and experts gathered for the 30th Nigerian Economic Summit (NES) in Abuja to discuss the future of Nigeria’s economy across various sectors. Among the topics under discussion was the critical issue of local manufacturing of medicines, a sector that holds immense potential to transform healthcare in Nigeria. Health Procurement Africa was privileged to contribute to this conversation, with our Nigeria Country Programme Manager, Chukwudi Uche, serving as a panellist in an interactive session titled, “Is the Market Ready for Increased Local Manufacturing of Medicines?”
Chukwudi’s participation highlighted not only the challenges but also the opportunities within Nigeria’s healthcare procurement system. His insights focused on how procurement inefficiencies continue to affect the system and what steps can be taken to overcome them, paving the way for the local manufacture of medicines. Below, we explore some of the key takeaways from his discussion and the potential pathways to achieving a more efficient and effective health procurement framework.
Chukwudi opened the session by addressing the current state of health procurement practices in Nigeria, noting that many are still operating at a tactical level rather than being strategically aligned for long-term development. According to him, procurement practices in healthcare, based on Health Procurement Africa’s extensive experience, are still ad hoc, with little optimization for the robust and reliable supply chains needed to support local medicine production.
For Nigeria to be ready for increased local manufacturing of medicines, procurement systems need to evolve. Chukwudi stressed the need for procurement to be strategically guided at every level. This guidance must come with strong leadership support that can help create value within the health sector. The current procurement frameworks do not yet have the infrastructure to fully support local production on a large scale, but they can be reformed to do so.
One of the most critical aspects of procurement reform is ensuring that health procurement is led by qualified professionals. Chukwudi emphasized that having the right people in the right roles is crucial. Certified procurement professionals with the appropriate skills, knowledge, and attitude are essential for driving improvements.
To achieve this, Nigeria needs a clear competency framework that aligns different roles with the necessary skills to ensure optimal performance. This approach forms the nucleus of a strengthened, end-to-end procurement capability that can significantly improve the efficiency and effectiveness of healthcare delivery.
Another point raised during the panel was the need for internal stakeholder involvement in procurement processes. Departments such as finance, audit, administration, and HR all play critical roles in building a robust procurement organization. Chukwudi highlighted how cross-functional collaboration can lead to stronger procurement outcomes, enhancing accountability and transparency.
Suppliers are key partners in the healthcare procurement process, and ensuring they are paid on time is essential for maintaining a reliable supply chain. Chukwudi discussed how timely payments can make suppliers more willing to work with the public sector, driving down the prices of medicines and other health products. He also emphasized that future reforms should mandate the publication of compliance to timely payments as part of a broader effort to drive accountability and cost reduction in healthcare procurement.
Ensuring the quality of medicines is another significant area of concern. Chukwudi called for enhanced collaboration between procurement bodies and regulatory agencies like NAFDAC to ensure that all medicines meet the required quality standards. He also discussed the importance of having quality control mechanisms in place at the point of receipt in drug management agencies. This ensures that any substandard products are identified and addressed before they enter the healthcare system.
Future reforms should also make provision for framework agreements, a procurement technique proven to be beneficial in the public sector. These agreements allow for better supplier engagement, more competitive pricing, and enhanced service delivery. Chukwudi pointed out that adopting this technique could be a game-changer for Nigeria’s healthcare system.
Chukwudi concluded his session by discussing the importance of building capability in data management and applying technology to procurement processes. Without data, strategic decisions in procurement cannot be made. Tools like spend analysis allow procurement teams to evaluate how funds are spent, identify inefficiencies, and make more informed decisions.
Moreover, applying technology to procurement systems can drive efficiencies that positively impact the availability, affordability, and access to health products. This is particularly important in Nigeria, where system and process technologies can help streamline procurement and supply chain management, ensuring that essential medicines are always available when needed.
Health Procurement Africa’s participation in the 30th Nigerian Economic Summit underscored the need for significant reforms in Nigeria’s healthcare procurement system. The country has immense potential to become a leader in local medicine manufacturing, but this will only be possible with strategic, data-driven procurement frameworks led by qualified professionals. As we look ahead, it is clear that procurement reform will be a critical factor in transforming Nigeria’s healthcare sector and ensuring that all Nigerians have access to high-quality, affordable medicines.
At Health Procurement Africa, we are committed to supporting this transformation by advocating for best practices in procurement, fostering collaboration across sectors, and driving forward the use of data and technology to enhance procurement efficiency. Together, we can build a healthier, more resilient Nigeria.
For more information about our work and insights into healthcare procurement, visit www.healthprocurementafrica.org.