According to Health Minister Mohammed Ali Pate, Nigeria’s healthcare spending currently stands at approximately $120 per capita. The government contributes only $30, while the majority comes from out-of-pocket payments.
He cautioned that this funding shortfall leaves many Nigerians vulnerable and stressed the need for more efficient resource allocation to strengthen the healthcare system.
Pate shared these insights during the National Health Financing Dialogue in Abuja, themed “Reimagining the Future of Health Financing in Nigeria,” aimed at building evidence for sustained funding and encouraging private-sector participation in healthcare.
“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 the 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 emphasised the need to optimise resources, mobilise additional funding, and allocate it effectively to protect vulnerable populations. He noted that as Nigeria’s economy grows, government revenue should increase, with a greater share directed to healthcare, though public funding alone is insufficient.
He advocated for a robust healthcare market with active private-sector involvement and civil society serving as advocates and accountability partners.
Nigeria’s healthcare system has relied heavily on out-of-pocket payments for over two decades. In recent years, federal contributions have risen, and Pate expressed hope that state governments would match these efforts following the dialogue.
He urged stakeholders to collaborate with the National Health Insurance Authority (NHIA) to channel private spending into larger risk pools and empower regulators to procure services on behalf of citizens.
“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 reiterated the mandatory health insurance requirement for all Nigerians, calling on employers and individuals to ensure coverage.
“Our challenge now is to operationalise this mandate, creating a single large risk pool that allows care for those who fall sick to be sustainably financed,” he said.
As of 2023, Nigeria’s per capita healthcare spending was approximately $71.96, with the federal government contributing about 5.03% of total health expenditure, or roughly $30 per capita. Private spending, primarily out-of-pocket, accounts for 74.85% of total health costs, placing significant financial burdens on individuals.
The NHIA Act mandates universal health insurance to reduce out-of-pocket expenses, but only 5% of Nigerians are currently insured, compared to South Africa’s $500 per capita spending (45% government-funded), Kenya’s $60 (35% government), Ghana’s $80 (40% government), and Rwanda’s $100 (split evenly between government and out-of-pocket).
