Health Policy Experts Demand Comprehensive Overhaul of Nigeria's Healthcare Financing System
Health policy experts have issued a strong call for a complete and comprehensive overhaul of Nigeria's healthcare financing system, warning that the current structure remains unsustainable and continues to deny millions of Nigerian citizens access to quality medical care. The urgent appeal was made during a significant webinar hosted by SYNLAB Nigeria, which was themed "Enabling Healthcare Financing for Complete Patient Care." Stakeholders at the forum emphasized the critical need for immediate reforms to dramatically improve healthcare affordability, accessibility, and preventive care across the nation.
Current System Relies Heavily on Out-of-Pocket Payments
Participants at the forum highlighted that Nigeria still relies overwhelmingly on out-of-pocket payments from patients, which account for approximately 70 percent of all healthcare funding in the country. Meanwhile, less than 10 percent of the population is covered by any form of health insurance. According to the experts, this severe imbalance actively discourages early medical intervention and exposes households to devastating financial hardship whenever serious illness occurs.
Weaknesses in Revenue Mobilization and Risk Pooling
Dr. Adeniyi Adeniran, a health financing expert and National Professional Officer at the World Health Organization Nigeria, described the country's healthcare financing model as fundamentally weak across several key areas. He specifically pointed to deficiencies in revenue mobilization, risk pooling, and strategic purchasing. Dr. Adeniran strongly advocated for the adoption of innovative financing approaches, including:
- Blended finance models
- Outcome-based funding mechanisms
- Digital health solutions
He stressed that such models are absolutely critical for resource-constrained systems like Nigeria's, rather than being optional reforms. These approaches are essential to address existing gaps and significantly improve overall system efficiency.
Excessive Focus on Curative Care Over Prevention
Also speaking at the webinar, Dr. Olumuyiwa Olusanya, Managing Partner at Insignia Health, faulted the system's strong emphasis on curative care at the expense of preventive measures. He warned that late presentation of illnesses consistently leads to much higher treatment costs and considerably poorer health outcomes for patients. Dr. Olusanya urged policymakers to prioritize preventive healthcare by integrating routine screenings and diagnostics into insurance packages. He also called on the National Health Insurance Authority to enforce mandatory health insurance coverage and ensure broader inclusion of preventive services in all benefit plans.
Digital Platforms Expanding Healthcare Access
In her contribution, Jennie Nwaokoye, founder of Clafiya, highlighted the growing and transformative role of digital platforms in expanding access to healthcare financing. She explained that Clafiya enables users to save incrementally for medical expenses while leveraging pooled demand to negotiate significantly lower service costs. According to her, the platform has helped reduce out-of-pocket healthcare expenses substantially while also lowering employer healthcare costs. She added that Clafiya's partnership with SYNLAB Nigeria allows users to access laboratory tests at discounted rates, demonstrating the enormous potential of collaboration between diagnostics providers and fintech firms.
Unanimous Call for Coordinated Care Model
Speakers at the webinar unanimously agreed that Nigeria must move decisively away from a fragmented, treatment-driven system to a more coordinated model that supports the entire continuum of care—from prevention and diagnosis through treatment and follow-up. They stressed that achieving meaningful and lasting reform would require much stronger collaboration among government agencies, insurers, healthcare providers, and private sector innovators. The experts concluded that without immediate and comprehensive changes to the financing structure, Nigeria's healthcare system will continue to fail its citizens, particularly the most vulnerable populations.
