Nigerian Households Struggling With High Medical Costs, Health Ministry Reports

Nigerian Households Struggling With High Medical Costs, Health Ministry Reports

Nigerian households are shouldering an “overwhelming burden” of the nation’s healthcare costs, according to the Coordinating Ministry of Health and Social Welfare. Dr. Kamil Soretire, Director of Health Planning, Research, and Statistics, revealed that in 2022, healthcare spending accounted for 4.6% of Nigeria’s GDP, with only 0.8% contributed by the government.

Dr. Soretire highlighted that approximately 70-80% of healthcare funding came from the private sector and household contributions. He stressed the need for improved legislative oversight and accountability to achieve universal health coverage. “Households bore over 70% of healthcare costs in 2022, while government schemes covered just 13%,” he said, urging legislators to expand social insurance coverage to alleviate the financial burden on households.

Primary healthcare centres (PHCs) received minimal funding, indicating a critical area requiring legislative support and integration with social health insurance programs. Dr. Soretire noted that healthcare spending on diseases like malaria and non-communicable diseases underscored the need for enhanced state-level initiatives and legislative action to improve healthcare delivery.

He reported that in 2022, households contributed 72.4% of the total health expenditure, amounting to ₦6.8 trillion ($16 billion), far exceeding the recommended 30-40% threshold. This financial strain on families highlights the gaps in health insurance coverage in the country. The total health expenditure for 2022 stood at ₦9.19 trillion ($21.71 billion), representing 4.6% of Nigeria’s GDP, an increase from 3.7% and 4.3% in 2020 and 2021, respectively.

Per capita health spending rose to $100, up from $76.3 in 2020 and $88.8 in 2021, yet the reliance on private spending remains alarmingly high. Public funds, including federal, state, and local government contributions, accounted for only 14.4% of total health expenditure (₦1.3 trillion or $3.14 billion), while donor contributions made up 11.6% (₦1.06 trillion or $2.51 billion).

The heavy dependence on private funds to finance healthcare services is evident, with government schemes contributing a mere 10.6% of the revenue for financing schemes, and households providing a staggering 72.4%. Other financing sources included donor funds managed by their agencies (9.1%), social insurance revenues (1.4%), and voluntary insurance revenues (1.1%).

Current expenditure dominated at 96.3% (₦8.85 trillion or $20.90 billion), while capital expenditure accounted for just 3.7% (₦342.8 billion or $0.81 billion). Secondary hospitals accounted for the largest share of health services at 34.6%, followed by pharmacies and other medical goods providers at 19.3%. Primary healthcare centres, despite their critical roles, provided only 7.0% of services, raising concerns about the accessibility and availability of primary care services.

About 55% of health expenditure was directed towards communicable diseases, with malaria incurring the highest costs. Expenditure on reproductive health and non-communicable diseases stood at 14.3% and 14%, respectively, highlighting the need for balanced attention across different health priorities.

Dr. Aminu Magashi, Coordinator of the Africa Health Budget Network, emphasized the urgent need for enhanced government funding and expanded insurance coverage. He noted that high out-of-pocket spending by households underlined the necessity for policies aimed at reducing financial barriers to healthcare to improve health outcomes and reduce poverty. He called for robust policies that increase public funding and ensure that health services are accessible to all, regardless of economic status.

Some affected households shared their struggles, including John Okeke, a school teacher in the FCT, who spends a large part of his income on healthcare, yet it is still not enough. Mr. Okeke noted that insurance coverage was minimal, leaving people to fend for themselves. He urged the government to address these issues to reduce the financial burden on households and improve the overall health and well-being of the population.