The debate over Nigeria’s low health budget is no longer new, but experts say that the real issue lies in how effectively the country manages its existing resources.
In 2025, Nigeria allocated N2.48 trillion to healthcare, a 58.5 percent increase from the previous year, accounting for just 5.18 percent of the national budget, far below the World Health Organization’s (WHO) 15 percent benchmark.
This issue is not unique to Nigeria alone. Across Africa, only eight of 47 African WHO-member countries spent at least $249 per capita between 2012 and 2020.
For Nigeria, the 2025 allocation amounts to just $7.8 (N11,724) per person, which is about N33 a day, barely enough to meet basic health needs, according to the Development Research and Project Center (DRPC, 2025).
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Experts say the challenge extends beyond low funding to the inefficient use of existing public and private health resources. Neto Ikpeme, policy analyst and health economist, argued that Nigeria must build systems that make patient spending a functional part of health financing.
“We must allow hospitals to function independently so they can position themselves properly for funding already coming in through patients’ spending, while chanelling it efficiently in a way that supports a large part of the system,” he said. “This will create competition among health facilities and ensure patients get real value for their money.”
Ikpeme added that the government should focus on fair pricing, subsidies, and transparent monitoring systems.
Obisike Maduabuchi, a medical doctor, blamed corruption for some of Nigeria’s healthcare system.
“Sometimes, resources are diverted or misappropriated. The equipment and drugs budgeted for are not supplied to public hospitals appropriately,” he said.
Out-of-pocket spending
A 2017 report by the National Health Accounts revealed that out-of-pocket payments account for 77 percent of total healthcare financing, while the government contributes just 14 percent.
External donors provide 7.5 percent, and corporations and nonprofits contribute less than one percent. Nigerians spent over N3.33 trillion out-of-pocket on healthcare tin 2017—underscoring that the issue is not inadequate funds, but inefficient use of private resources.
Accountability challenges also persist at the subnational level. Out of the N1.32 trillion ($908 million) budgeted for health in 2024, states spent only N816.64 billion, just 61.9 percent , according to BudgIT reports published on October 27, 2025.
“Twelve states spent less than half of their allocations, while Taraba, Cross River, and Zamfara utilised under 30 percent,” the report added.
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On the contrary, only Yobe, Gombe, Ekiti, Lagos, Edo, Delta, and Bauchi achieved above 80 percent budget implementation. Similarly, just Lagos, Bayelsa, Edo, Abia, Kwara, Niger, and Delta exceeded the N5,000 per capita health spending threshold according to BudgIT.
The report highlights weak transparency and fund tracking across state systems, calling for stronger monitoring and accountability mechanisms.
Corruption galore
At the primary healthcare (PHC) level, corruption and mismanagement further erode trust.
“PHCs make up over 80 percent of health facilities in Nigeria, yet corruption through bribery, drug diversion, ghost workers, and procurement fraud continue to cripple the system,” said Sarah, co-author of a BMJ Global Health article entitled, ‘Strengthening Primary Healthcare in Nigeria: A Means to Achieving Universal Health Coverage.’
“Procurement fraud leads to wastage, inflated contracts, and the illegal sale of essential drugs for personal gain,” she added.
Such practices, the study noted, weaken the foundation of Nigeria’s healthcare system and compromise service delivery.
As Ikpeme noted, “It’s not just about how much we spend, but how well we manage the resources already flowing into the system.”
Reframing health financing beyond service delivery
Experts further argue that one of Nigeria’s biggest missteps is that health financing is often framed around service delivery rather than system strengthening.
Stephanie Omoarebun, a medical laboratory scientist and secretary-general of the Young Medical Laboratory Scientists Forum, shared this concern with this reporter. “We keep funding hospitals, drugs, and short-term fixes while underfunding diagnostics, data, and workforce systems that actually sustain better health outcomes,” she noted.
Omoarebun stressed that long-term gains will come from investing in the foundational systems that drive diagnostics, workforce training, and data management — not merely in operational costs and drug supplies.
Unlocking health enterprise, traditional medicine potential
Beyond government and patient financing, experts see significant untapped potential in health entrepreneurship by professional bodies, and the integration of traditional medicine into mainstream healthcare.
Mark Oladoja, a public health advocate and health policy specialist, noted that Nigeria can achieve better outcomes by leveraging the liquidity of professional associations and expanding preventive care through traditional medicine integration.
“Professional bodies in various health sectors should continue to advocate for improved health outcomes while pooling together the resources they command in the form of dues and funds to strategically invest it back into the system in a way that it generates revenue for them,” Oladoja said.
He also emphasised the preventive value of integrating traditional medicine.
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“Traditional medicine, if integrated into the mainstream health system, could improve preventive health coverage, which will in turn reduce patients’ health spending on disease treatment,” he explained.
Facts and figures
Nigeria’s health budget accounts for just 5.18 percent of the national budget, still far below the World Health Organisation (WHO) benchmark of 15 percent.
In 2025, healthcare funding rose by 58.5 percent, from N1.62 trillion in 2024 to N2.56 trillion, yet its dollar value fell by 15.4 percent, from $2.02 billion to $1.7 billion, a DRPC, 2025 report stated.
Per capita spending increased from N7,395 ($9.2) to N11,724 ($7.8), about N33 ($0.02) per person per day, still critically low, according to DRPC (2025).
While several African countries are boosting health spending, only South Africa has met and sustained the Abuja Declaration target of allocating at least 15 percent of the national budget to healthcare, WHO reports.
Nigeria also earmarked N46 billion to tackle health workforce migration, a vital step amid the ongoing brain drain. However, experts warn that fragmented funding remains a major obstacle, as disjointed allocations across non-health MDAs continue to undermine accountability and efficiency in the system.
Expert recommendations on health budget
To improve the efficient use of Nigeria’s health budget, the Development Research and Project Center (DRPC) recommends a centralised allocation of funds to the Ministry of Health, stabilising the exchange rate further to ease inflationary pressure on essential sectors such as healthcare, enhancing stakeholder participation in the budget cycle to strengthen implementation, and prioritising local production of medical supplies to reduce the impact of currency volatility, as stated in its report, ‘Understanding the Nigerian Proposed Budget: The Healthcare Sector in Focus.’
