Out-of-pocket healthcare spending in Nigeria fell to 58.3 per cent of total health expenditure in 2024, showing modest improvement in financial risk protection, according to the National Health Accounts (NHA) 2023–2024.
The 2024 figure represents a slight decline from 58.8 per cent in 2023 and a significant improvement from over 70 per cent recorded between 2015 and 2021, reflecting gradual progress in reducing the financial burden of healthcare on households.
The report was presented to journalists on Sunday in Abuja during the Ministerial Oversight Committee (MOC) meeting of the Basic Health Care Provision Fund (BHCPF). Produced by the Federal Ministry of Health and Social Welfare in collaboration with the National Bureau of Statistics, the Federal Ministry of Finance, the Budget Office, the Office of the Accountant-General of the Federation, WHO, and the Centre for Health Economics and Development, the NHA is designed to guide policy decisions, resource allocation, and the monitoring of progress toward universal health coverage.
“Total health expenditure rose from ₦7.88 trillion in 2023 to ₦10.42 trillion in 2024, driven by increased spending from households, government, and development partners. Despite the decline in out-of-pocket spending, households remained the largest source of health financing, accounting for 66 per cent of total health expenditure in 2024, down from 70.3 per cent in 2023″, the report stated.
Government spending on health accounted for 12.4 per cent of total health financing in 2024, while social health insurance contributions stood at five per cent, highlighting the limited role of prepaid and pooled financing mechanisms in the country. Donor funding increased from 14 per cent in 2023 to 19 per cent in 2024, with most resources managed directly by development partners rather than through government systems.
Capital expenditure made up 10.5 per cent of total health spending in 2024, indicating continued underinvestment in health infrastructure and long-term system strengthening.
Analysts cautioned that, despite the decline in out-of-pocket spending, the heavy reliance on household payments still leaves many Nigerians, particularly women, children, and low-income households, vulnerable to financial hardship when seeking healthcare.
Health sector experts urged governments at all levels to expand health insurance coverage, increase public funding for healthcare, and strengthen pooled financing mechanisms. They emphasized that these measures are crucial for further reducing out-of-pocket expenses and improving financial risk protection, ensuring that all Nigerians can access healthcare without facing catastrophic costs.
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