The Minister also urged greater funding, openness, and cooperation to enhance the system's durability.
The Minister of State for Health and Social Welfare, Iziaq Salako, has recognized that Nigeria's health funding is still extremely insufficient even though there have been recent efforts to create a strong and accessible healthcare system.
Mr. Salako, who addressed the event in Abuja on Thursday during Day 2 of the 2025 Joint Annual Review of the Health Sector, stated that although advancements have been achieved in various fields, the health sector continues to encounter numerous obstacles, including insufficient funding, elevated out-of-pocket costs, a lack of medical personnel, and inadequate facilities.
He observed that the advancement is not occurring quickly enough to address the health requirements of more than 230 million Nigerians.
"Many mothers continue to die during childbirth, many children do not live past their fifth birthday, and many families are pushed into poverty due to medical expenses," he stated.
Health funding significantly under the target
Mr. Salako pointed out that the government's expenditure on health accounted for 5.2 percent of the national budget, significantly less than the 15 percent goal established by African leaders in the Abuja Declaration of 2001.
He mentioned that Nigeria's per capita health spending was roughly $43 (around N67,000) by 2024, a number he called inadequate for a nation of Nigeria's scale and medical challenges.
The official stated that despite theNational Health Insurance AuthorityThe (NHIA) has extended coverage to approximately 10-12 percent of the population, yet out-of-pocket expenses continue to make up 71 percent of overall health spending, causing millions of Nigerians to fall into poverty annually.
"These statistics highlight the dual issues of inadequate funding and severe medical costs that plunge millions of Nigerians into poverty each year," he stated.
The history of limited healthcare funding
For many years, Nigeria has faced insufficient funding for its healthcare system, allocating less than six percent of its national budget to health, which is significantly lower than the 15 percent goal established by the 2001 Abuja Declaration.
With more than 70 per cent of overall health spending coming from out-of-pocket payments, Nigeria also features one of the highest rates of family expenses on medical care globally.
Per capita healthcare expenditure has stayed low, with an average of approximately $40 to $50 over the last ten years, even though health insurance access is projected to be only 10 to 12 percent following recent changes.
Nigeria remains behind in achieving global health objectives
Mr. Salako noted that although indicators related to maternal and child health have shown improvement, Nigeria is still not on course to achieve the Sustainable Development Goals (SDG) target of lowering under-five mortality to below 25 deaths per 1,000 live births by 2030.
As per the 2023 Nigeria Demographic and Health Survey (NDHS), the maternal mortality rate stands at 512 deaths for every 100,000 live births, a decrease from 576 in 2018. The under-five mortality rate is 110 deaths per 1,000 live births, compared to 132 in 2018.
Additionally, Nigeria still contributes to about 14 percent of worldwide maternal fatalities and 9 percent of global child deaths under five years old, even though it makes up just 2.6 percent of the world's population.
"Although these numbers indicate some progress, they are still not sufficiently positive for a country of our standing, resources, and aspirations," he stated.
We have achieved advancement, yet obstacles remain
The minister highlighted various accomplishments within the Nigerian Health Sector Renewal and Investment Initiative (NHSRII), a unified strategy in line with President Bola Tinubu's Renewed Hope Agenda, designed to ensure efficient, cooperative, integrated, and non-isolated execution to establish a health system capable of handling, reacting to, and recovering from crises.
He mentioned the Basic Health Care Provision Fund (BHCPF) and the NHIA Act 2024 as instances of significant changes that have enhanced access to primary healthcare and health insurance.
He stated that over 20 million Nigerians are now receiving care via different health insurance schemes (formal sector registration, the vulnerable group initiative, and the BHCPF) at both national and subnational levels, with PHC quality ratings rising from 42 to 67 percent between initial and final evaluations.
Nevertheless, he acknowledged that underlying problems remain, especially concerning financial shortfalls, loss of skilled personnel, vulnerabilities in supply chains, and deficiencies in infrastructure.
"Although there has been notable progress to date, major obstacles continue to hinder our journey toward a resilient health system. These challenges are complex, encompassing issues such as funding shortfalls, ongoing fragmentation, and coordination difficulties," he stated.
We have chosen not to be limited by our difficulties; instead, we have adopted a resolute approach to alter the story permanently.
Dedication to enhanced responsibility and teamwork
Mr. Salako mentioned that the federal government is focusing on health funding reforms and intends to keep advocating for higher financial support at both national and state levels.
He promised that the ministry would guarantee the distribution of the BHCPF, enhance capital spending disbursements, and fulfill the responsibilities associated with the Health Infrastructure Bond.
Responsibility will exist at both the federal and state levels. We will keep working to guarantee the open and wise use of assigned health resources.
He further stated that the administration will keep promoting the states to achieve their health budget targets and guarantee that matching financial support is provided to fulfill donor funding commitments.
"Advancing forward demands robust political commitment to place health at the forefront of our national budget, fiscal responsibility, technical proficiency, cooperation among sectors, and creativity to bypass conventional development routes along with accountability," he added.
He mentioned that the government will keep investing in human resources, digital health systems, and infrastructure that can withstand climate challenges, while also enhancing access to vital medications and basic healthcare services.
"The robust healthcare system we aim for is one where each Nigerian, irrespective of their location or income level, can obtain high-quality medical care without facing financial strain," he stated.
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