Healthcare Burden Falls Heavily on Nigerian HouseholdsHealthcare Burden Falls Heavily on Nigerian Households The Coordinating Ministry of Health and Social Welfare has revealed that Nigerian households bear an overwhelming 70-80% of the national healthcare costs. This alarming statistic highlights a significant gap in health coverage and underscores the urgent need for legislative and policy interventions to improve access to affordable healthcare. Government contributions to healthcare expenditure amounted to a mere 0.8% of gross domestic product (GDP) in 2022, while private sector and household contributions accounted for the remaining 99.2%. This disparity indicates a heavy reliance on out-of-pocket payments by families, which have a detrimental impact on their financial well-being. According to the Director of Health Planning, Research and Statistics, Dr Kamil Soretire, the 72.4% of total household health expenditure in 2022 amounted to N6.8 trillion (US$16 billion). This far exceeds the recommended threshold of 30-40%, placing a significant financial burden on families. The disproportionate dependence on private spending is evident in the fact that households provided a staggering 72.4% of the revenues for financing health care schemes. This lack of comprehensive insurance coverage exposes families to financial risks and undermines access to essential healthcare services. Primary health care centers, which play a crucial role in providing preventive and basic health services, receive minimal funding. Strengthening primary health care and integrating it with social health insurance programs is essential to improve overall healthcare outcomes. Experts like Dr. Aminu Magashi, Coordinator of the Africa Health Budget Network, emphasize the urgent need for increased government funding and expanded insurance coverage. By reducing financial barriers to health care, these measures can improve health outcomes and reduce poverty. Affected households share concerns about the exorbitant out-of-pocket expenses that strain their finances. John Okeke, a school teacher, highlights the inadequacy of insurance coverage and the need for government intervention to alleviate the financial burden on households. The data unequivocally demonstrates that the Nigerian model of health financing is unsustainable. Robust policies that increase public financing and ensure accessible healthcare for all are essential to improve the health and well-being of the population.
The Coordinating Ministry of Health and Social Welfare has revealed that Nigerian households bear an “overwhelming burden” of the national healthcare costs.
The Director of Health Planning, Research and Statistics, Dr Kamil Soretire, stated this during an interview on Friday in Abuja.
Mr Soretire explained that expenditure on health accounted for 4.6 percent of Nigeria’s gross domestic product in 2022, while government contributions amounted to only 0.8 percent.
He said about 70 to 80 percent of the financing came from the private sector and household contributions.
He said there is a need for better legislative oversight and accountability to achieve universal health care.
“Households bore more than 70 percent of health care costs in 2022, while government plans covered only 13 percent,” he said.
The director urged lawmakers to expand social security coverage to ease the financial burden on households.
He said primary health care centres receive minimal funding, indicating that this is a critical area that needs legislative support and integration with social health insurance programmes.
He noted that health expenditure is mainly focused on diseases like malaria and non-communicable diseases. He stressed the need for comprehensive initiatives and legislative measures at the state level to improve health care.
He said: “The 72.4 percent of total household health expenditure in 2022 amounted to N6.8 trillion (US$16 billion), which far exceeded the recommended threshold of 30 to 40 percent. This stark figure underscores the financial strain on families and gaps in health coverage in the country. Total health expenditure (THE) for 2022 stood at N9.19 trillion (US$21.71 billion), representing 4.6 percent of Nigeria’s GDP. This is up from 3.7 percent and 4.3 percent of GDP in 2020 and 2021 respectively.’’
According to him, per capita health spending rose to $100, compared to $76.3 in 2020 and $88.8 in 2021.
“Despite these increases, dependence on private spending remains alarmingly high,” he said.
On contributions from public donors, he said public funds, which include contributions from federal, state and local governments, account for only 14.4 percent of total health expenditure (N1.3 trillion or US$3.14 billion).
He said donor contributions amounted to 11.6 percent (N1.06 trillion or US$2.51 billion).
“This disparity highlights the heavy reliance on private funds to finance health care services. Government schemes contributed only 10.6 percent of the revenues for financing schemes, with households providing a staggering 72.4 percent. Other sources of funding included donor funds managed by their agencies, 9.1 percent, social insurance revenues, 1.4 percent, and voluntary insurance revenues, 1.1 percent.
“In terms of expenditure type, current expenditure dominated at 96.3 percent (N8.85 trillion or US$20.90 billion) while capital expenditure accounted for only 3.7 percent (N342.8 billion or US$0.81 billion),” he said.
He said secondary hospitals provide the largest share of healthcare at 34.6 percent, followed by pharmacies and other suppliers of medical goods at 19.3 percent.
“Primary health centres, despite their crucial role, provided only 7.0 percent of services. This skewed distribution raises concerns about the accessibility and availability of primary health care services,” he said.
He said about 55 percent of health spending goes to infectious diseases, with malaria causing the highest costs.
“Expenditure on reproductive health and non-communicable diseases was 14.3 percent and 14 percent respectively, underscoring the need for balanced attention to different health priorities,” he said.
Coordinator of the Africa Health Budget Network, Dr. Aminu Magashi, also stressed the urgent need for increased government funding and expanded insurance coverage.
Mr Magashi, who is also a health economist, noted that high out-of-pocket household expenditure underscored the need for policies aimed at reducing financial barriers to health care to improve health outcomes and reduce poverty.
He argued that increasing government spending and introducing comprehensive health insurance could reduce financial risks for households.
He called for immediate action, saying the data clearly showed that the Nigerian model of health financing is unsustainable.
“We need robust policies that increase public financing and ensure that health care is accessible to all, regardless of their economic status,” he said.
Some affected households also shared their concerns.
A resident of the FCT and a school teacher, John Okeke, said he spends a large portion of his income on healthcare, “but it is still not enough.”
Mr Okeke noted that insurance coverage was minimal and people had to fend for themselves.
He urged the government to address the issues to ease the financial burden on households and improve the overall health and well-being of the population.
(NAN)
