Nigeria currently spends about $120 per capita on healthcare, with only $30 contributed by government and the bulk financed through out-of-pocket payments, Health Minister Mohammed Ali Pate has said.
He warned that this funding gap leaves vulnerable Nigerians exposed and emphasized the need to mobilize resources more efficiently to strengthen the health system.
Pate made the remarks during the opening of the National Health Financing Dialogue in Abuja on Monday, themed “Reimagining the Future of Health Financing in Nigeria.”
The dialogue aims to build a strong evidence base to support increased and sustained financing commitments and to facilitate policy reforms that encourage private sector involvement in the health system.
Urgent need for domestic investment
Highlighting the urgent need for domestic investment, Pate said: “Earlier this year, a major shock reminded us of a hard truth that we cannot build a healthy nation on the back of other people’s taxpayers.
“Health is not cheap, it requires consistent and deliberate investment. For decades, we have underinvested in health, and this is reflected in our outcomes.
“Today, Nigeria spends roughly $120 per capita on health. Two-thirds of that comes from out-of-pocket spending, about $30 per capita from government, and less than 10% from development partners.
“That is like trying to ride a bicycle while comparing ourselves to countries operating on the level of a Rolls Royce “he said.
Pate added that the challenge is how to stretch resources efficiently, mobilize more funding, and deploy it wisely while protecting the poorest and most vulnerable.
Expanding government and private sector roles
Pate noted that as our economy grows, the government revenue expands and must allocate more to health, but government alone cannot do it.
He called for a well-functioning health market where the private sector participates actively, and civil society plays its role as watchdog, advocate, and accountability partner.
For more than two decades, Nigeria’s health financing has relied heavily on out-of-pocket spending by families, households, and communities.
In the last two years, the Federal Government has increased its contribution, and we hope that, by the end of this dialogue, state governments will also commit to matching those efforts.
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He urged all actors in the healthcare market to work with the NHIA to better organize private spending through larger risk pools. Regulators should also be empowered to purchase policy services on behalf of Nigerians.
“Encouragingly, we have already seen a significant rise in health insurance enrollment 4 million new enrollees in just 18 months.
“If we had been moving at this pace for the past two decades, more than 60 million Nigerians would already have health coverage,” he noted.
Pate stressed the mandate to make health insurance compulsory for all Nigerians, calling on employers to enroll workers and for every Nigerian to secure coverage.
“Our challenge now is to operationalize this mandate, creating a single large risk pool that allows care for those who fall sick to be sustainably financed,” he said.
What you should know
Nigeria spends approximately $71.96 per capita on healthcare as of 2023. The federal government allocates about 5.03% of total health expenditure, translating to roughly $30 per capita.
- Private expenditure accounts for 74.85% of total health spending, with a significant portion being out-of-pocket payments.
- Approximately 75% of health expenditures are paid directly by individuals, leading to financial strain and potential impoverishment.
- The NHIA Act mandates health insurance coverage for all Nigerians, aiming to reduce out-of-pocket expenses and promote financial protection.
- Despite the mandate, only 5% of Nigerians have health insurance, compared with countries like South Africa, which spends over $500 per capita with 45% government funding.
Kenya spends $60 per person (35% government), Ghana $80 (40% government), while Rwanda splits its $100 per capita evenly between government and out-of-pocket payments.
