The Federal Government is considering approaching the National Assembly to increase the Basic Health Care Provision Fund (BHCPF) from the current 1 percent to at least 2 percent of consolidated revenue as part of efforts to ensure stronger and more sustainable domestic investments in Nigeria’s healthcare sector.
Minister of State for Health, Dr. Adekunle Salako, announced this at the opening of a four-day National Policy Dialogue on “Reimagining the Future of Health Financing in Nigeria,” held in Abuja on Monday. The event was organised by the National Health Insurance Authority (NHIA).
Salako said the move was necessary in view of the rising out-of-pocket health expenses facing Nigerians, a trend that government is determined to address.
He stated, “Under the Presidential Performance Agreement we signed, a key deliverable for the Ministry is to enroll at least 44 million Nigerians into the national health insurance scheme by 2030. This will help reduce out-of-pocket expenditure on health, which currently stands at an unacceptably high rate of about 70%.”
The Minister explained that government’s priority remains strengthening the health framework, expanding coverage, ensuring sustainability, and tackling persistent challenges such as inadequate budgetary allocations, systemic inefficiencies, fragmented programming, and limited reliable data.
He reaffirmed government’s commitment to transforming the country’s health financing system through domestic resource mobilisation, expanded insurance coverage, and reforms to reduce reliance on external aid. According to him, the administration is dedicated to improving citizens’ health through sustainable strategies.
Salako commended the NHIA for convening the policy dialogue, noting that President Bola Tinubu had directed the Ministry of Health to reduce dependence on foreign aid by boosting domestic funding.
“The President has consistently emphasised that a strong health system is vital for national growth, and has therefore mandated the implementation of several interconnected policies to achieve Universal Health Coverage and protect vulnerable Nigerians,” he said.
The Minister pointed to the growth in federal budgetary allocations for health as proof of the administration’s commitment. He explained, “Nigeria’s health budget has grown significantly from ₦434 billion in 2018 to ₦1.2 trillion in 2021. While this represents commendable progress, the 2025 allocation of ₦2.48 trillion, equivalent to 5.18% of the total federal budget—though more than doubling since 2021, remains far below the 15% benchmark set by the Abuja Declaration.”
Highlighting efforts to expand health insurance access, Salako added, “Key among these is the National Health Insurance Act of 2022, which makes health insurance mandatory for all Nigerians and seeks to significantly expand coverage beyond the previous 5% of the population. The Act also established the Vulnerable Group Fund to cater for those unable to afford premiums.”
While urging stronger domestic investments, he stressed that Nigeria must learn from international best practices, citing Ghana and Kenya as examples. “Moving forward, we must be prepared to learn from best practices in other countries. Nigeria aims to adapt such models, strengthen regional collaboration, and apply context-specific innovations,” he said.
The four-day forum is expected to provide a platform for shaping the future of health financing in the country. Participants will explore new strategies, review existing challenges, and seek practical solutions to expand funding and reduce the burden on households.
Speaking at the event, Director-General of the NHIA, Dr. Kelechi Ohiri, described the dialogue as timely. He noted that the global financing landscape for health is undergoing major changes.
“This gathering is dedicated to shaping the future of domestic health financing in Nigeria. This dialogue is timely. Globally, the financing landscape for health is shifting. The world we knew, where official development assistance played a central role, is changing rapidly. We are in what I describe as a period of multiple transitions,” Ohiri said.
He highlighted three major global transitions—development financing, health, and demographics—and stressed that these shifts demand a change in strategy.
According to him, “Nigeria recognises these realities. At the last World Health Assembly, the global community adopted a landmark resolution on strengthening health financing. This resolution reaffirmed commitments to increase domestic investment in health to achieve Universal Health Coverage, ensure that external financing complements rather than dictates national priorities, reduce fragmentation and dependency, strengthen systems for tracking and reporting health financing flows, and support countries in developing health financing roadmaps.”
Ohiri explained that the dialogue would prioritise citizen perspectives, private sector involvement, and sub-national participation. He said discussions would begin with engagement involving citizens, civil society, the media, and representative associations.
He further noted, “The forum will then review the state of health financing in Nigeria using data and evidence to guide policy, followed by discussions with sub-national governments, and conclude with high-level engagements involving the Ministries of Finance, Budget and Planning, and the Presidential Committee on Tax Reform.”
He stressed that NHIA’s mission is in line with President Tinubu’s reform agenda, adding, “We are committed to expanding financial protection for all Nigerians by reducing dependence on out-of-pocket payments. Equity remains central to this effort, ensuring that the poor and vulnerable are not left behind. This is a call to action and a call to collaborate. Achieving sustainable and equitable health financing will require the collective effort of government, civil society, development partners, the private sector, and academia. As we begin today, I hope the energy and commitment to this forum will culminate in clear commitments, documented outcomes, and a roadmap for Nigeria’s future in health financing.”
Panellists at the event, which included public health experts, media practitioners, development partners, and other health stakeholders, discussed innovative approaches for sustainable health financing. They examined accountability in the sector with a focus on improving budget transparency, participatory budgeting, and expenditure tracking.
Participants also deliberated on the role of the media as a strategic tool for promoting transparency and accountability in driving domestic resource mobilisation for health.
The national policy dialogue on health financing will continue until Thursday, with outcomes expected to shape future reforms and investments in the sector.