Stakeholders Urge Nigerian Government to View Healthcare as Investment, Not Expenditure

Stakeholders in Nigeria’s health sector have called on the Nigerian government to stop treating healthcare as a mere expenditure, and instead recognise it as a critical investment that drives economic productivity and human capital development.

Speaking at breakout session on “The Health Productivity Link: Building a Resilient Workforce”, at the Nigeria Economic Summit (NES), on monday, in Abuja, health and private sector leaders stressed that shifting the perception of healthcare from a cost to an investment would unlock greater economic potential, especially through collaboration with the private sector. They noted that the $1trn economy target is threatened if healthcare is not prooritised.

Tinuola Akinbolagbe, CEO of the Private Sector Health Alliance of Nigeria (PSHAN), stressed that health should be seen as a strategic investment, not a financial burden.

“We must stop treating health as a cost. Health is an investment that drives productivity. The private sector has a vital role to play, whether in financing or innovation,” she said.

She referenced the Coalition Against COVID-19 (CACOVID), which raised approximately ₦39 billion during the pandemic, describing it as the largest pool of funding mobilised for health in the country’s history.

“We are now considering the most effective ways to invest that money. Technology should be a key driver, and we need to bring together all stakeholders across sectors.”

She added that National Health Insurance Authority (NHIA) should drive investment, highlighting that the global insurance industry is one of the largest sectors and could be a major avenue for attracting foreign direct investment (FDI) into Nigeria’s health system.

Brian Deaver, CEO of the African Medical Centre of Excellence (AMCE), urged the government to invest more in local manufacturing. He recalled that Afreximbank has announced a $1 billion fund for local manufacturers, yet only $75 million has been accessed so far.

He said the fund represents a huge opportunity for Nigeria.

Deaver, also underscored the importance of data-driven decision-making in health, stating that investing in data is essential to improve health outcomes and guide strategic planning.

In his remarks, Kelechi Ohiri, director-general of the NHIA, revealed that while progress is being made in expanding health insurance coverage, challenges remain.

“We’ve added four million Nigerians to the insurance scheme in the last two years, which is the fastest increase so far. But it’s still a long journey when compared to a population of over 200 million,” he said.

He cited the informal sector as a major hurdle due to its fragmented nature, making it difficult to bring workers under the health insurance umbrella.

Khalilu Muhammad, senior officer for Health Systems Strengthening Delivery at the Bill and Melinda Gates Foundation, called for more government efficiency in catalysing private sector participation.

“In a country of over 200 million people, it’s impossible to stimulate economic growth without addressing the foundational issues in healthcare,” Muhammad said.

Stakeholders stressed thay without public financing, Nigeria cannot build foundation for human capital.

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