Transcript Medicines Procurement and Supply Management

Medicines Procurement and Supply
Management Issues in Nigeria
WHO Technical Briefing Seminar
08-12 October 2006
Joel Ewuga Babakandzhi Adagadzu
Food and Drugs Services
Federal Ministry of Health
Abuja - Nigeria
Outline 1
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Introduction
 Present situation
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Selection
Procurement
Warehousing/Distribution
Financing issues
Challenges
 Ongoing interventions
 Future plans
Introduction 1
 During
the last 2 decades the medicines
supply situation in Nigeria has deteriorated
considerably
 Medicines supply is now erratic and
unreliable with widespread shortages or
stock-outs in spite of the increasing
availability of funds
Introduction 2
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Increased allocation of health budget to
medicines procurement has not improved the
supply situation
 Several development partners have been
actively involved in providing support to the
government with a view to improving the drug
supply situation
 Such
supports are mainly in the form of
provision of medicines and health
commodities, capacity building, etc.
Selection 1
 Presently
selection not standardized and
coordinated
 Selection may be by partners, programs or
health facilities
 Selected medicines in most cases do not
necessarily conform to the National
Essential Medicines List
 Nobody appears to be in-charge
Procurement (1)
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Reliable consumption data not available
Procurement plan not always available
Various partners and facilities procuring independently
Certain areas over supplied while others are
undersupplied
Medicines procured are at an average of 3 times
international prices
This leads to about 75% loss in savings
30% of medicines procured do not meet the 80% shelf
life requirement for rational procurement
Warehousing/Distribution 1
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Most procurements are done without prior plan for
distribution as only 10% of delivered products have
distribution plans
 No budgets are provided for distribution
 Consequently, procured medicines are often left for
long periods in the stores before distribution resulting
at times to expiry
 Massive wastage of resources through uncoordinated
and inappropriate distribution plans of medicines to
the same health facilities by various partners and
programmes
Financing (1)

Health Care Structure in Nigeria comprises of:
1.
Primary Health Care (Local govt)
2.
Secondary Health Care (State govt)
3.
Tertiary Health Care (Federal govt)
 The Federal Government also provides both
financial and technical support to the lower tiers
of government in addition to the efforts of these
governments
 Various developmental partners also finance
medicines procurement
Challenges 1
 Sourcing
of funds
 Development of logistics strategy
 Training of personnel
 Centralized procurement or pooled
procurement
 Quality concerns
 Cost of medicines
Challenges 2
 Monitoring
and evaluation
 Development of a sound information
system
 Public/private sector partnership
 Effective management of the National
Health Insurance Scheme, etc.
Key intervention programmes
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Cost Recovery System or Drug (Medicines)
Revolving Funds (DRF)
National Health Insurance Scheme
Public Private Partnership (PPP) for the
financing of public medicines supply
Support by partners for various health
programmes
Inflow of these resources uncoordinated and
impact not commensurate
Ongoing Interventions
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With the support of WHO, the following are
ongoing:
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Establishing a list of key Partners involved in
Medicines procurement and distribution with aim of
coordination to maximize use of resources
To carry our an in-depth assessment of the medicines
procurement and distribution in the public sector so
as to target interventions in addressing gaps.
Thank you