The Federal Government is considering approaching the National Assembly to increase Basic Health Care Provision Fund (BHCPF) funding from the current 1% to at least 2% of consolidated revenue for sustained, stronger domestic investments in healthcare.
The Minister of State for Health, Adekunle Salako, said the move was necessary in light of the rising out-of-pocket health expenses burdening Nigerians, a trend the government is deeply concerned about
Salako, while delivering his keynote address at the opening of the four-day National Policy Dialogue on “Reimagining the Future of Health Financing in Nigeria,” held in Abuja and organized by the National Health Insurance Authority (NHIA) on Monday said, “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%.
“We remain focused on strengthening the framework, expanding coverage, ensuring sustainability, and addressing persistent challenges such as inadequate budgetary allocations, systemic inefficiencies, fragmented programming, and limited reliable data.
He reaffirmed the Federal Government’s commitment to transforming Nigeria’s health financing system through sustainable domestic resource mobilisation, expanded insurance coverage, and innovative reforms to reduce dependence on external aid, emphasising an unwavering dedication to improving citizens’ health through sustainable strategies.
Salako, who commended the NHIA for convening the dialogue at a time when Nigeria must look inward in financing its health agenda, noted that President Bola Tinubu had directed the ministry to boost domestic resources and reduce dependency on foreign aid.
“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,” Salako said.
Pointing to significant increases in health sector funding as evidence of this commitment, the Minister pointed out, “Nigeria’s health budget has grown significantly from ₦434 billion in 2018 to ₦1.2 trillion in 2021.
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“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,” he said.
Salako also emphasised efforts to expand health insurance access, saying, “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 calling for stronger domestic investments, the Minister stressed the need for Nigeria to adopt global best practices, citing lessons from Ghana and Kenya.
“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.
NHIA Director General, Dr. Kelechi Ohiri, echoed the call for reform, saying the dialogue comes at a crucial time in global health financing.
“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.
While highlighting three major transitions, development financing, health, and demographics, the DG emphasised that the changes demand a shift in strategy.
“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.”
He said the dialogue would focus on citizen perspectives, private sector engagement, and sub-national participation, explaining that it would begin with conversations involving the people, civil society, the media, and representative associations.
The forum would 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, Ohiri explained.
He stressed that the NHIA’s mission aligns with the administration’s reform agenda, saying, “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,” he said.
“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,” Ohiri added.
Panellists, including public health experts, media practitioners, development partners, and other health stakeholders, explored innovative strategies for sustainable health financing while discussing “Advancing Accountability in Health Financing: Improving Budget Transparency, Participatory Budgeting, and Expenditure Tracking” and “Leveraging Media as a Strategic Tool for Transparency and Accountability in Driving Domestic Resource Mobilisation for Health.”
The national dialogue continues till Thursday.