Nigeria Health Supply Chain Modernization Fund

If you’ve ever worked in healthcare in Nigeria, you know the frustration: vaccines sitting in warehouses while clinics run out. Essential medicines expiring because nobody knew they were there. Cold chain equipment that breaks down with no backup plan. It’s not that Nigeria lacks health commodities—it’s that getting them from central warehouses to the last-mile health facility is incredibly difficult.

The National Primary Health Care Development Agency is offering NGN 6.5 billion (roughly $4.2 million USD) per state consortium to fundamentally modernize how health supplies move through the system. This isn’t about buying more fridges or trucks. It’s about building end-to-end digital visibility, reliable cold chain infrastructure, and public-private partnerships that actually work.

For state ministries of health willing to partner with private logistics providers and embrace data-driven supply chain management, this fund provides the capital and technical support to leapfrog from paper-based, fragmented systems to modern, integrated logistics. The goal is simple but ambitious: ensure that every health facility in your state has the vaccines, medicines, and supplies they need, when they need them, in usable condition.

What makes this program different is the emphasis on sustainability and accountability. The funding comes with performance incentives—you get rewarded for actually hitting service level targets like reducing stockouts and maintaining cold chain integrity. And you’re expected to build systems that can continue after the grant period ends, which means smart public-private partnerships and digital platforms that reduce long-term costs.

At a Glance

What This Funding Covers

The NGN 6.5 billion is structured to address the full supply chain, from central warehouses to the most remote health posts:

Digital Visibility Systems (NGN 2.6 billion): This is the foundation—technology that lets you actually see what’s happening in your supply chain. The funding covers e-logistics platforms that track commodities from receipt to delivery, data centers and servers to run these systems, analytics tools to predict demand and optimize distribution, mobile applications for health workers to report stock levels and place orders, and integration with national health information systems. The goal is real-time visibility: at any moment, you should be able to see stock levels at every facility, what’s in transit, and what needs to be reordered.

Cold Chain and Warehousing (NGN 1.95 billion): Nigeria’s power grid is unreliable, which makes maintaining cold chain for vaccines incredibly challenging. This component funds solar-powered cold rooms that can maintain temperature even during grid outages, refrigerated vehicles for distribution, warehouse upgrades with proper temperature zones and backup power, temperature monitoring devices that alert you to excursions, and maintenance contracts to keep equipment running. The emphasis is on energy-efficient, climate-appropriate solutions that work in Nigerian conditions.

Last-Mile Distribution (NGN 1.3 billion): Getting supplies from state warehouses to remote health facilities is often the hardest part. This funding supports contracting third-party logistics providers who specialize in last-mile delivery, community health riders with motorcycles or bicycles for hard-to-reach areas, distribution hubs in underserved zones, and performance-based contracts that incentivize reliability. The idea is to bring in private sector expertise and efficiency while maintaining public sector oversight.

Capacity Building and Governance (NGN 450 million): New systems only work if people know how to use them and are held accountable. This component funds training for health workers on using digital systems and managing inventory, logistics staff training on cold chain management and quality assurance, supervision and mentoring programs, performance dashboards that make results visible to stakeholders, and governance structures that ensure accountability. This is the glue that holds everything together.

Beyond the direct funding, selected state consortia get access to technical assistance from supply chain experts, peer learning networks with other states, and support navigating regulatory requirements for public-private partnerships.

Who Should Apply

This program is designed for state health systems ready to make a serious commitment to supply chain transformation. You’re a good fit if:

You Have State Leadership Commitment: This can’t be driven by one department alone. You need buy-in from the state executive council, the commissioner of health, and key stakeholders across government. Supply chain modernization touches procurement, finance, health service delivery, and more. If your leadership sees this as a strategic priority and is willing to allocate state budget for sustainability, you’re in a strong position.

You Can Build or Have Built Private Sector Partnerships: The program requires partnering with private logistics providers. This might be companies that already operate in Nigeria’s logistics sector, health-focused supply chain specialists, or technology providers with relevant platforms. You don’t need signed contracts to apply, but you need to show you’ve identified credible partners and have a realistic plan for structuring the partnership.

You Have Baseline Data on Your Supply Chain: To improve, you need to know your starting point. Strong applications include data on current stockout rates, delivery lead times, cold chain failures, and facility-level stock visibility. If you’ve done a supply chain assessment, even a basic one, that’s valuable. If you haven’t, you should conduct one as part of your application preparation.

You’re Committed to Gender-Responsive Services: The program emphasizes ensuring that supply chain improvements benefit women and girls, who are often the primary users of primary healthcare. Your application should show how you’ll ensure equitable access, involve women in planning and oversight, and track gender-disaggregated outcomes.

Insider Tips for a Winning Application

Start with Your Biggest Pain Points: Don’t try to fix everything at once. Identify the 2-3 biggest supply chain failures in your state. Is it vaccine stockouts in rural areas? Cold chain failures during the dry season? Inability to track what’s in warehouses? Build your proposal around solving these specific problems. Reviewers want to see focused, realistic plans, not vague promises to modernize everything.

Choose Your Private Partners Carefully: Not all logistics companies are created equal. Look for partners with proven experience in healthcare logistics, understanding of Nigeria’s regulatory environment, financial stability to sustain operations, and willingness to accept performance-based payment models. Get references and check their track record. A weak partner will sink your project no matter how good your plan is.

Design for Sustainability from Day One: The NGN 6.5 billion is a one-time injection. What happens in year three when the grant ends? Your application should clearly explain how the system will be sustained. This might include state budget commitments for ongoing costs, revenue from service fees charged to partners or programs, efficiency savings that offset costs, or transition plans to fully integrate systems into state operations. Reviewers are skeptical of projects that depend on perpetual external funding.

Build in Redundancy for Critical Systems: Nigeria’s infrastructure challenges are real. Power outages, internet connectivity issues, and equipment failures happen. Your design should include backup power for all cold chain equipment, offline functionality for digital systems, redundant temperature monitoring, and maintenance contracts with guaranteed response times. Show that you’ve planned for things to go wrong.

Emphasize Data and Accountability: The program rewards performance, which means you need robust monitoring systems. Describe exactly how you’ll track key metrics like stockout rates, delivery times, cold chain uptime, and facility satisfaction. Explain who will be responsible for data quality, how often you’ll review performance, and what consequences exist for not meeting targets. Transparency and accountability are highly valued.

Involve Health Workers in Design: The people who’ll actually use these systems—facility staff, warehouse managers, delivery personnel—should have input into how they’re designed. Describe your plan for engaging frontline workers, gathering their feedback, and incorporating their insights. Systems designed in isolation from users often fail in practice.

Application Timeline

The October 10, 2025 deadline is for full proposals. Here’s a realistic timeline:

January-March 2025: Conduct or update your supply chain baseline assessment. Map your current systems, identify gaps, and quantify problems. Begin conversations with potential private sector partners.

April 2025: Submit your concept note with baseline assessment. This is a shorter document (10-15 pages) outlining your state’s challenges, proposed approach, and partnership framework. The Agency reviews these and invites selected states to submit full proposals.

May-June 2025: If invited to submit a full proposal, this is when you do the heavy work. Finalize partnership agreements, develop detailed implementation plans, create your monitoring framework, and build your budget. Expect to spend 60-80 hours on the full proposal, plus significant time from technical staff.

July-August 2025: Submit your full proposal and prepare for presentation. The evaluation panel typically includes supply chain experts, health system specialists, and representatives from the Agency. Be ready for detailed technical questions.

September 2025: Grant agreements finalized. This includes negotiating performance targets, payment schedules, and reporting requirements.

October 2025-September 2027: 24-month implementation period with quarterly performance reviews. You’ll report on metrics, participate in a national learning collaborative with other funded states, and adjust your approach based on what’s working.

Frequently Asked Questions

Can we apply if we don’t have a private partner identified yet? You can submit a concept note, but you’ll need to identify and formalize partnerships before the full proposal stage. The Agency can facilitate introductions to potential partners if you’re struggling to find appropriate companies.

What if our state has limited technical capacity for digital systems? That’s common and not a disqualifier. Part of the capacity building component is training your staff. You can also include technical assistance from your private partners or consultants in your budget. The key is showing you have a plan to build capacity, not that you already have it.

How are performance incentives structured? Typically, a portion of the grant (often 15-20%) is held back and released based on achieving specific targets like reducing stockout rates below a threshold, maintaining cold chain uptime above a percentage, or achieving delivery time targets. The exact structure is negotiated during grant agreement finalization.

Can we use the funding for salaries? Limited salary support is allowed, particularly for new positions essential to running the modernized system (like a supply chain manager or data analyst). But the bulk of funding should go to infrastructure, systems, and services, not existing staff salaries.

What happens if we don’t meet performance targets? There are usually grace periods and opportunities to course-correct. If you’re falling short, the Agency will work with you to understand why and adjust your approach. Persistent failure to meet targets can result in withholding incentive payments or, in extreme cases, terminating the grant.

Do we need to cover the entire state or can we start with pilot zones? Phased approaches are acceptable and often preferred. You might start with a few high-priority local government areas, demonstrate success, then expand. The key is showing a credible path to eventually covering the whole state.

How do we handle data privacy and security? Your digital systems will handle sensitive health data. Your proposal should include plans for data security, user access controls, compliance with Nigerian data protection regulations, and protocols for handling breaches. This is increasingly important to reviewers.

How to Apply

Ready to transform your state’s health supply chain? Here’s what to do:

Step 1: Conduct a supply chain assessment if you haven’t recently. Document your current stockout rates, delivery times, cold chain performance, and visibility gaps. This baseline is essential for your application.

Step 2: Secure state executive council approval in principle. You’ll need formal approval later, but early political buy-in strengthens your application.

Step 3: Identify and approach potential private sector partners. Have preliminary conversations about partnership models, roles, and expectations.

Step 4: Develop your concept note outlining your state’s challenges, proposed solutions, partnership approach, and preliminary budget.

Step 5: Submit your concept note and, if invited, prepare your full proposal with detailed implementation plans, partnership agreements, and monitoring frameworks.

Visit the official program page for detailed guidelines and application portal access: https://www.nphcda.gov.ng/

Questions about eligibility, partnership development, or technical requirements? The Agency has established a support desk for applicant states—contact information is available on their website. They’re responsive and can provide guidance throughout the application process.