PSN urges Makinde to sign Oyo drug agency bill

The Pharmaceutical Society of Nigeria (PSN) has called on Oyo State Governor Seyi Makinde to sign the Oyo State Drug and Health Commodity Management Agency Bill into law, saying the delay has contributed to the high cost of medicines and other health commodities in the state.

The society said the governor’s failure to assent to the bill also contributed to poor planning and weak monitoring of drugs across the state.

PSN’s Oyo State Chairman, Col. Victor Segun Ajanaku (rtd), made this known in a statement made available to journalists in Ibadan on Tuesday.

Ajanaku said the delay had left the state’s health commodity system with fragmented and parallel supply chains that do not offer value for money. He added that it had also resulted in disjointed data systems that limited effective planning and decision-making, as well as weak accountability and monitoring frameworks.

According to him, the prices of commodities at service delivery points remained high and inconsistent.

He said that once the governor signed the bill into law, the agency it would establish would provide the state with a sustainable source of revenue through an efficient drug revolving fund system.

He added that the agency would also promote accountability, transparency and coordination in the procurement and distribution of health commodities.

Explaining the purpose of the proposed agency, the statement reads: “The Oyo State Drug and Health Commodity Management Agency is a proposed State Government agency intended to improve the procurement, management, distribution and availability of potent and genuine medicines and other health commodities across Oyo State. The agency will serve as a global drive and part of conditions that attract both domestic and international supports for quality health commodity security to the citizens.

“The agency is also positioned to serve as a reliable source of quality-assured medicines and health commodities, with procurement focused on sourcing directly from manufacturers and other appropriately prequalified suppliers. This is to strengthen product authenticity, quality, supply reliability and accountability.

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“The agency will also operates on the principle of pooled procurement, to ensure equal access to cheap, safe and effective medicines by the public. The Bill has been passed to law by the Oyo State House of Assembly on Thursday 6th February 2025 but is yet to receive assent.

“Despite notable progress, the system continues to face critical gaps: Fragmented and parallel supply chains that do not demonstrate value for money. Disjointed data systems, limiting effective planning and decision-making. Weak accountability and monitoring frameworks. High and inconsistent pricing of commodities at service delivery points. Absence of a centralized and retrievable consumption database. Inadequate storage infrastructure and suboptimal storage conditions.

“The establishment of the agency will: Serve as a sustainable revenue-generating platform for the State through an efficient Drug Revolving Fund system. Operate as a self-sustaining and cost-recovery mechanism, reducing reliance on inconsistent funding sources. Strengthen accountability, transparency, and coordination in the procurement and distribution of health commodities. Enable a centralized, data-driven system, ensuring accurate forecasting, quantification, and planning. Align Oyo State with global best practices, already adopted by over twenty-six (26) states across Nigeria. Guarantee fair and standardized pricing, through direct procurement from manufacturers at negotiated rates. Provide effective governance and oversight through a structured Board. The State has secured UNICEF/Global Fund’s commitment of 4.9 billion naira to provide a purpose-built, Pharmagrade Warehouse”.