FG seeks private capital to close healthcare financing gap

The Federal Government has urged banks, investors, and private sector operators to channel more capital into Nigeria’s health sector, saying public funding alone cannot deliver the hospitals, diagnostic centres, and pharmaceutical manufacturing capacity needed to serve the country’s population of over 240 million.

The Minister of State for Health and Social Welfare, Dr Iziaq Adekunle Salako, made the call while declaring open the FCMB Healthcare Summit 2026 in Lagos, where the bank unveiled a Dedicated Healthcare Fund in partnership with the Healthcare Federation of Nigeria.

Speaking on the theme, “Financing Growth, Unlocking Opportunity, Building the Future of Healthcare,” Salako said access to long-term financing remains one of the biggest constraints to the growth of Nigeria’s healthcare system.

He noted that while the government has introduced far-reaching reforms to improve healthcare financing, stronger collaboration with the private sector is essential to bridge the country’s huge infrastructure and investment deficit.

“Government cannot build Nigeria’s healthcare future on public financing alone, and the private sector cannot do so without the policy certainty, risk-sharing instruments and guaranteed demand that only government can provide.

“What this summit represents, and what the FCMB Dedicated Healthcare Fund we launch today embodies, is that convergence. I encourage every institution in this room to leave here not merely with new relationships, but with concrete transactions in motion,” he said.

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The minister said the Federal Government’s reforms are backed by legislation, including the National Health Act 2014 and the National Health Insurance Authority (NHIA) Act 2022, both aimed at expanding access to healthcare and attracting investment into the sector.

According to him, the Basic Healthcare Provision Fund (BHCPF), established under the National Health Act, has disbursed a cumulative ₦339 billion over the past 12 years to strengthen primary healthcare delivery, with ₦235 billion released within the last three years under President Bola Tinubu’s Health Sector Renewal Investment Initiative.

He disclosed that the latest disbursement of ₦32.9 billion is supporting more than 8,300 primary healthcare centres across the country, with plans to expand coverage to about 13,000 facilities.

Salako added that the Federal Government is seeking to increase the statutory allocation to the BHCPF from one per cent to two per cent of the Consolidated Revenue Fund, while urging state governments to fulfil their counterpart funding obligations.

He also said the implementation of the NHIA Act has led to significant growth in health insurance coverage, with enrolment rising to more than 22 million Nigerians, representing a 35 per cent increase since 2023.

Despite the progress, he lamented that out-of-pocket spending still accounts for 71 per cent of healthcare expenditure in Nigeria, far above the global benchmark of between 15 and 20 per cent.

To strengthen compliance with mandatory health insurance, the minister revealed that the Federal Government has directed private firms seeking federal contracts to present valid NHIA insurance certificates as part of procurement requirements.

Salako further highlighted the Health Sector Renewal Investment Initiative and the Health Sector Strategic Blueprint 2024–2027 as key pillars of the administration’s healthcare reforms.

He said the reforms have already produced more than 21 new strategic policies, led to the establishment of 17 federal tertiary health institutions and six cancer centres of excellence, and supported the expansion of primary healthcare infrastructure, alongside other investments aimed at improving healthcare delivery nationwide.

The minister also reaffirmed the government’s commitment to reducing Nigeria’s dependence on imported medicines through the Presidential Initiative for Unlocking the Healthcare Value Chain.

He said although Nigeria imported about 70 per cent of its medicines, diagnostics, and medical devices in 2023, local pharmaceutical manufacturing has grown significantly, with the number of registered pharmaceutical companies increasing from 180 in 2022 to more than 200 in 2025.

According to him, locally manufactured products now account for nearly half of Nigeria’s healthcare consumption, while the country is home to Africa’s second-largest rapid diagnostic test manufacturing plant and is preparing to host Sub-Saharan Africa’s first Active Pharmaceutical Ingredients manufacturing facility.

Salako also highlighted ongoing efforts to commercialise phytomedicine through the Nigeria Institute for Pharmaceutical Research and Development, alongside the National Power for Health Initiative, which is designed to address electricity challenges affecting healthcare facilities.

On financing, the minister pointed to several intervention programmes supporting the sector, including the Central Bank of Nigeria’s ₦100 billion Healthcare Sector Intervention Facility, the Bank of Industry’s €50 million Human Development Accelerator Programme, supported by the European Investment Bank Global, the European Commission, and the Gates Foundation, as well as the African Development Bank’s $200 million facility for Nigerian growth enterprises.

He said the newly launched FCMB Dedicated Healthcare Fund complements these initiatives by providing commercial financing aligned with government healthcare policies.

Salako urged healthcare providers and investors to strengthen corporate governance, improve financial reporting, leverage blended financing opportunities, and prioritise investments in health insurance, diagnostics, primary healthcare, and local pharmaceutical manufacturing to take advantage of the ongoing reforms.