Posted Tue, Dec 17, 2024 5:21 PM

Health Financing for Universal Health Coverage in Nigeria

Achieving Universal Health Coverage (UHC) in Nigeria requires a concerted effort to expand health insurance coverage for all Nigerians, which can serve as a basis for strengthening primary care and as a foundation for secondary and tertiary healthcare services. Health financing is critical for any nation to achieve its goals for the health system, particularly UHC, which requires deliberate policies to ensure that the populace is provided with access to quality healthcare that does not expose them to financial hardship.

Although the Nigerian government recognises the vital importance of achieving UHC, as expressed in several health policies, the country has faced significant challenges in achieving the desired progress toward this goal. Available statistics show that more than 76 percent of Nigerians pay for healthcare out of pocket (OOP), which is associated with a heightened risk of catastrophic health expenditures, hampering the desired progress toward universal coverage. Achieving the financial protection goal of UHC can effectively prevent poverty by reducing catastrophic expenditure or impoverishment, which will ensure health security. This is particularly important for Nigeria, given the country's high poverty rate. The World Bank, in 2022, projected that 42.6 percent of Nigerians lived in monetary poverty. This percentage was higher for multidimensional poverty at 63 percent.

This paper examines the current state of health financing in Nigeria. It does so through the lens of the three essential functions of health financing, including revenue mobilisation, pooling of revenues, and strategic purchasing. Importantly, this report provides concrete recommendations for addressing Nigeria's health financing challenges. These recommendations are designed to facilitate progress toward UHC, underscoring the value and importance of this report. It is hoped that the government and other relevant stakeholders will adopt these recommendations to strengthen the health system and ensure timely, equitable, efficient, and affordable access to healthcare services for the populace.