Through strategic partnership with SCIDaR and Wema Bank, both parties have successfully co-developed low-cost credit product [ The Health Financing Facility for Community Pharmacists and Patent Proprietary Medicine Vendors] which addresses the common challenges that has constrained health SMEs from access finance from banks to invest and grow their businesses.
The Health Financing Facility, is a ground breaking initiative that aims to address the challenge of lack of financing opportunities for Community Pharmacists and Patent Proprietary Medicine Vendors (PPMVs). This event marks a major milestone under the Promoting Accreditation for Community Health Services (PACS) project, implemented in Kaduna and Lagos States under the regulatory oversight of Pharmacy Council of Nigeria with funding from Merck, Sharp and Dohme (MDS) for Mothers.
The Health Financing Facility aims to revolutionize the financing landscape for small and medium-sized enterprises in the health sector, providing them with the necessary resources to thrive and expand. This initiative underscores SCIDaRs commitment to the Government of Nigeria’s vision for the healthcare sector (Unlocking Value Chains and Health Security) through the delivery of affordable, accessible and sustainable financial solutions.
The unveiling of the initiative held at the Head Office of Solina Centre for International Development and Research (SCIDaR) Abuja brought together stakeholders from the Central Bank of Nigeria, Pharmaceutical Society of Nigeria, National Association of Patent Proprietary Medicine Association of Nigeria (NAPPMAN).
The Executive Director/CEO, SCIDaR, Dr. Uchenna Igbokwe, said this effort aimed to unlock potentials for local drugs manufacturers and the masses most especially who patronizes the frontline provider drugs for the greater percentage of Nigerians. The PPMVs constitute almost 60% of that demography that provides such services that serves as the first point of calls for medicines for Nigeria’s growing population. He stated further that is imperative for the PPMVs and CMPs to be captured in the scheme of things hence SCIDaR’s intervention and collaboration with relevant stakeholders especially wema bank that is providing affordable financial loans. SCIDaR also provide training and capacity building, leveraging right standard operating procedures aimed at improving their service delivery.
He stated further that the partnership is a multi-stakeholder support financing initiative which include the Solina Centre for International Development & Research, Wema Bank, Patent Proprietary Medicine Vendors, Pharmaceutical Society of Nigeria and other stakeholders.
The partnership is the first in the series of joint initiative aimed at providing access to affordable financing for community medicine practitioners amongst others.
Mrs. Enedani Enegbene representative of the Pharmaceutical Society of Nigeria stated
that this initiative is a pilot stage to be carried in Lagos and Kaduna State and a follow-up to an existing programme Promoting Accreditation for Community Health Services (PACHS)
On the part of the Wema Bank, Mr. Chioma Onuaguluchi-Regional Manager-Abuja 1 stated that WEMA-SCIDAaR collaboration targets a minimum 200 beneficiaries in this pilot phase, with each beneficiary entitled to a Maximum of 1m Naira for PPMVs (medicine vendors) and maximum of N3m for Community Pharmacists that operates within Lagos and Kaduna States only.
He stated further that beneficiaries are to pay back from proceeds of their business over a-6 months period, supporting working capital needs of health practitioners (PPMVs and Community Pharmacists) e.g medicine supplies etc with a maximum of 200 PPMVs and CPs who will access the bank’s services during this first phase.
Among the five beneficiaries who were presented with dommy cheques of the sum of two hundred thousand naira each, Mr. Felix C Nnaji who serves as Secretary General of NAPPMED Kaduna State praised the Wema-SCIDaR partnership as a step in the right direction trusting that more patronage and increment in credit facility is sure once the pilot is successful.
Concept Note On Wema-SCIDaR Health Financing Facility.
Introduction
Solina Centre for International Development and Research (SCIDaR) is a not-for-profit organization with head office at 8 Libreville Crescent Wuse 2 Abuja dedicated to research and development of evidence-based approaches for implementing high impact health, social and economic interventions in Nigeria and Africa. SCIDaR works with businesses, governments, researchers and development organizations to develop innovative solutions that address pressing healthcare challenges.
Background
Patent and proprietary medicine vendors (PPMVs) are individuals who do not have formal pharmacy training but sell orthodox pharmaceutical products on a retail basis for profit. They are frequently the primary healthcare providers for a majority of Nigeria’s population, particularly in rural areas with limited access to formal healthcare facilities. These vendors provide a variety of services, including malaria and diarrhea treatment, as well as family planning. PPMVs have numerous obstacles. However, given the informal nature of their business, limited credit access remains one of their most pressing concerns. Financial institutions frequently hesitate to extend credit to PPMVs due to perceived risks, lack of collateral, and limited credit histories, impeding their ability to expand their businesses and invest in necessary
In 2023, a consortium led by SCIDaR in collaboration with Society for Family Health (SFH) under the regulatory supervision from Pharmacy Council of Nigeria (PCN) partnered with Merck Sharp and Dohme(MDS) for Mothers, to pilot a two year project termed “Promoting Accreditation for Community Health Services”( PACS) to enhance three key incentives; Access to Micro Credit, Quality Commodity and Branding for Patent Proprietary and Medicine Vendors(PPMVs) in Lagos and Kaduna State.
Project Objective
The overall goal of the PACS project is to improve adherence of PPMVs to the PCN accreditation program by implementing prioritized incentive options and ultimately increasing the quality and quantity of family planning and Primary Health Care (PHC) services in remote and hard to reach communities.
Strategy Objective
SCIDaR is partnering with key Financial Institutions to tailor interventions aimed at addressing product and capacity gaps on the demand and supply side of the health sector financing market which will ultimately increase access to and use of financial services particularly credit, savings, insurance, financial education, and digital payment platforms for increasing enterprise productivity and business income for health SMEs within targeted States of the PACS project.
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