Nigeria Seeks Sustainable Path for Health Financing

Edward Samuel, Abuja

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Stakeholders in Nigeria’s health sector have opened discussions on new strategies to secure sustainable financing for healthcare, as the National Health Financing Dialogue commenced in Abuja with the theme “Reimagining the Future of Health Financing in Nigeria”.

The four-day forum brought together government officials, civil society, development partners, and the private sector to explore innovative ways of funding health services and protecting vulnerable populations.

Addressing participants, the Coordinating Minister of Health and Social Welfare, Professor Ali Pate, stressed that Nigeria must increase domestic investment in health, warning that the country cannot continue to rely on foreign aid to strengthen its healthcare system.

He lamented that the country spends only about $30 per person in public health financing, with more than two-thirds of health costs borne directly by citizens. “We cannot pretend to ride a Rolls Royce on the budget of a bicycle,” he said.

Prof. Pate outlined the government’s health reform priorities, including strengthened governance, expanded population health outcomes, unlocking the health value chain, and improving resilience through health security, while urging civil society to play its role in ensuring accountability and advancing Universal Health Coverage (UHC).

Giving his remarks, the Minister of State for Health and Social Welfare, Dr. Iziaq Salako, said President Bola Tinubu has directed the ministry to prioritise sustainable health financing through increased domestic resources and effective implementation of policies that advance Universal Health Coverage (UHC).

He noted that the government has sustained funding for the Basic Healthcare Provision Fund, launched special initiatives like the Hope Health Project, and steadily increased health sector allocations.

According to Dr. Salako, Nigeria’s health budget rose from ₦434 billion in 2018 to ₦2.48 trillion in 2025, equivalent to 5.18% of the federal budget.

While this marks progress, Dr. Salako stressed it remains far below the 15% Abuja Declaration benchmark.

He added that the National Health Insurance Act 2022, which makes health insurance mandatory and establishes a Vulnerable Group Fund, is central to expanding coverage beyond the current 5% of the population.

The minister emphasised that Nigeria aims to enrol at least 44 million citizens into the national health insurance scheme by 2030, thereby reducing out-of-pocket health expenditure, which still stands at about 70%.

He urged stakeholders to explore innovative mechanisms, adopt global best practices, and strengthen accountability to ensure that every Nigerian has access to affordable and quality healthcare without financial hardship.

Giving the overview of the event, the Director-General of the National Health Insurance Authority (NHIA) and the Chairman of the Health Financing TWG, Dr. Kelechi Ohiri, also emphasised the need for Nigeria to strengthen domestic health financing as global aid flows continue to decline.

Dr. Ohiri explained that Nigeria is undergoing multiple transitions: a financing transition that requires reducing dependence on external aid, a health transition characterised by rising non-communicable diseases alongside infectious diseases, and a demographic transition that demands greater investment in health and education to harness the country’s demographic dividend.

He noted that at the recent World Health Assembly, countries, including Nigeria, committed to increasing domestic health investment, reducing fragmentation, and strengthening transparency and reporting mechanisms.

Nigeria, he added, sponsored a side event to push the global conversation on sustainable health financing and is now bringing that discussion home.

According to him, the dialogue has been structured to reflect Nigeria’s realities of high out-of-pocket spending and weak financial protection.

“Civil society, the private sector, and sub-national governments will all play key roles in shaping actionable outcomes, while ministries responsible for finance and planning will be engaged to ensure that health financing is mainstreamed into national economic priorities,he explained.

Dr. Ohiri stressed that the NHIA’s mission is to expand financial protection, reduce out-of-pocket payments, and ensure equity in access to healthcare, particularly for the poor and vulnerable.

He also called on all stakeholders to collaborate in advancing transparency, accountability, and innovative approaches that will secure a sustainable future for health financing in Nigeria.

 

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