WHO Urges Nigeria, African Countries to Allocate 20% of National Budget to Health Sector

•FG won’t backtrack on reforms, says Bagudu 

•Pate: over 20 million register for health insurance

Onyebuchi Ezigbo in Abuja

As part of the push for enhanced health sector financing in Nigeria, the World Health Organization (WHO) has advised Nigeria and other African governments to raise allocation to the health sector to at least 20 percent of annual budget.

It said that countries should make efforts to reduce out-of-pocket spending by citizens to shield households from financial hardship.

The advice by the WHO came just as Nigeria’s Minister of Budget and Economic Planning) Senator Abubakar Atiku Bagudu said the health sector is among the major beneficiary of the current economic growth trajectory resulting from reforms being implemented by the federal government.

Finance Minister Wale Edu who spoke on how to increase health financing in Nigeria, said economic statistics indicated the private sector spending in the health sector accounts for 74 percent while the public and donors account for about 14.4 percent.

Also, the Minister of Health and Social Welfare Prof. Ali Mohammad Pate whose ministry hosted the 4-Day Health Financing Dialogue that took place in Abuja said that Nigeria has made significant progress in the effort to reduce out of pocket expenditure on health by registering over 20 million on the national health insurance scheme.

Delivering a goodwill message at the 4-day Health Financing Dialogue organized by the National Health Insurance Authority (NHIA) in Abuja on Thursday, WHO Regional Director for Africa, Prof. Mohammed Janabi, urged Nigeria and other African countries to scale up investment in public health.

He said: “We believe that sustainable financing is the backbone of expenditure. These are backbone of resilient health system.

“This means increasing public health spending at least to 20% of the total health budget. This means increasing public health spending at least to 20% of the total health budget.”

The WHO scribe who spoke on the conference theme “Reimagining the Future of Health Financing in Nigeria.” stressed the need for sustainable health financing is vital to building resilient health systems.

He stressed that increased investment would reduce out-of-pocket payments, protect households, and strengthen pooling and prepayment mechanisms.

He added that evidence-based decision-making, such as cost-effectiveness and equity analyses, should guide fair and efficient resource allocation.

Commending Nigeria’s recent health sector reforms, Janabi described them as timely and commendable.

“With more than 223 million citizens, how the country finances health is vital for the well-being of its people and the future of the continent.

Janabi, however, praised the federal government’s recent reforms, noting initiatives such as the Basic Healthcare Provision Fund (BHCPF), the NHIA Act, and the expansion of state-level insurance schemes as significant strides toward strengthening Nigeria’s health sector.

Gates Foundation representative, expressed continued support for the revitalization of Nigeria’s health sector.

Nigeria’s leadership in health financing reform is timely and commendable. With over 223 million citizens, how the country finances health is vital for the well-being of its people and the future of the continent.

“We know healthier populations are more productive, more resilient to shocks, and better able to drive inclusive growth,” Janabi said.

The WHO Regional Director said the introduction of equity and investment units as well as the Legislative Network for Universal Health Coverage (UHC), which engages parliamentarians to push health reforms, offers inspiration to other African nations.

The African Union (AU) and the Global Fund also praised Nigeria’s leadership in health financing reforms, describing the country as a model for Africa at a time of shrinking aid and global health challenges.

AU Commissioner for Health, Humanitarian Affairs, and Social Development, Amb. Amma Adomaa Twum-Amoah, commended Nigeria’s recent approval of $1.7 billion for the Renewed Hope Projects to strengthen governance, expand primary health care, and improve service delivery nationwide.

“Today, Nigeria becomes the first West African nation to host such a dialogue, a milestone that comes at a time of shifting global financing, climate pressures and growing humanitarian crises.

While speaking on the impact of various reforms being implemented by the federal government, Bagudu said that the country is making steady progress adding that there is no going back on the reform initiatives.

In remarks, the Minister Finance, said that the reforms have put Nigeria in a good stead where more revenue earnings are now being witnessed.

He spoke of the gains of the fuel subsidy removal which he said caused a lot turbulence but is now yielding dividend.

According to him, the more revenue now available to government will no doubt impact positively on health sector financing.

While commending the innovative strides being made by the Minister of Health and Social Welfare to improve on health financing, Edu however advised that more efforts should be directed towards getting support from private sector, donor agencies and philanthropic organisations.

“Let me mention that today, private spending on health care accounts for 74 percent while the public and donors account for about 14.4 percent,” he said.

On his part, Pate said the health sector has witnessed a lot of progress since the coming of the present administration.

In terms of lifting the burden healthcare costs on Nigerians and reducing the out-of-pocket expenditure, the Minister said that a number of initiatives have been implemented which are yielding positive results.

According to Pate, as a result of the innovative steps taken by the Ministry and Nigeria Health Insurance Authority (NHIA), the number of subscribers to the national health insurance scheme has risen to over 20 million.

He said that if states can take steps to domesticate the NHIA Act, registration into the health insurance scheme will witness further increase.

Commissioner for Health, Humanitarian Affairs, and Social Development at the African Union Commission (AUC), Amb. Amma Twum-Amoah, emphasized the need for Africa to prioritise health security using its abundant resources.

While welcoming participants to the dialogue, Permanent Secretary at the Ministry of Health and Social Welfare, Ms. Daju Kachollom, said the dialogue represented a launch-pad for bold and coordinated action, repositioning health financing as a sovereign, strategic, and economic priority.