Experts Urge Overhaul Of Nigeria’s Healthcare Financing

Leading health experts have called for the overhaul of Nigeria’s healthcare financing system.

They warned that millions of citizens were being priced out of care due to heavy reliance on out-of-pocket payments and limited insurance coverage.

The call was made during a webinar hosted by SYNLAB Nigeria, titled “Enabling Healthcare Financing for Complete Patient Care,” during which stakeholders outlined urgent reforms to make healthcare more accessible, affordable, and preventive.

Nigeria currently funds about 70 per cent of its healthcare through direct household spending, while fewer than 10 per cent of citizens are covered by any form of health insurance.

Experts say this model not only discourages early care-seeking but also pushes families into poverty when illness strikes.

Speaking at the event, health financing expert and National Professional Officer, WHO, Nigeria, Dr Adeniyi Adeniran, described Nigeria’s healthcare financing structure as inadequate across its core functions — revenue generation, pooling of funds, and strategic purchasing of services.

He proposed adopting innovative financing models, such as blended finance, outcome-based funding, and digital health solutions, to bridge funding gaps and improve efficiency.

Adeniran noted that Innovative financing is not a luxury for wealthy systems, rather it is essential for constrained systems like Nigeria’s.

Also speaking, healthcare consultant and Managing partner at Insignia Health, Dr Olumuyiwa Olusanya, criticised the current system for focusing almost entirely on treatment rather than prevention.

According to him, delaying care until illness becomes severe significantly increases both costs and health risks.

He said that Nigeria is financing the end of the story and ignoring the beginning, urging policymakers to integrate preventive screenings and diagnostics into standard insurance packages.

Olusanya called on the National Health Insurance Authority (NHIA) to enforce mandatory health insurance and ensure that preventive care is included in all benefit packages. He also recommended adopting financing models such as capitation and outcome-based payments to improve efficiency and health outcomes.

Bringing a technology-driven perspective, Jennie Nwaokoye, founder of Clafiya, highlighted how digital health savings platforms are helping Nigerians better manage healthcare costs.

Clafiya enables users to save incrementally for medical expenses while negotiating discounted healthcare services through pooled demand. The platform reportedly reduces out-of-pocket costs by up to 40 per cent and employer healthcare expenses by up to 60 per cent.

She highlighted that a key partnership between Clafiya and SYNLAB Nigeria allows users to access laboratory tests at discounted rates, demonstrating how collaboration between diagnostics providers and fintech platforms can expand access to care.