Health finance is critical for ensuring that individuals and communities have access to quality healthcare.
Unfortunately, Nigeria’s existing health finance model has resulted in an unsustainable system that fails to satisfy the requirements of those it serves.
Health finance is a vital component of any working health system; however, the Nigerian health system is primarily reliant on out-of-pocket payments, resulting in a financially unsustainable position.
Nigerian Health Financing Model
The Nigerian model of health finance is unsustainable since it is based mostly on out-of-pocket payments. This system places an undue financial strain on people, households, and communities, which can be disastrous in times of illness.
Furthermore, the country’s inadequate public investment in health care results in a lack of preventative care and general access to quality healthcare.
Inadequate funding also adds to a scarcity of skilled workers and facilities, making it difficult for Nigerians to exercise their entitlement to health care.
As a result, reform efforts should concentrate on shifting away from out-of-pocket expenditures and toward direct public investment in health care to enhance access and affordability for all Nigerians.
Factors Contributing To Unsustainable Health Financing In Nigeria
Several reasons are causing health financing in Nigeria to become more unsustainable.
The great majority of Nigerians lack proper access to healthcare services since the majority of health expenditure (71 per cent) is out-of-pocket costs.
Furthermore, just 8% of overall health expenses come from pooled money such as taxes, with the Nigerian government spending only 4.3 per cent of its national budget on health care; this level of financing is substantially below what the World Health Organization recommended.
Robust social safety nets and finance for public sector operations are lacking, both of which are required to enable fair access to healthcare services.
Corruption, mismanagement, insufficient resources, and regional inequities in access to healthcare services exist throughout the country.
All of these variables contribute greatly to Nigeria’s unsustainable health financing and must be addressed if we are to see major changes.
The Impact Of Unsustainable Health Financing On The Health System
Because of unsustainable health finance mechanisms, Nigeria’s health system is struggling.
The system has broken down due to a lack of funding and resources, resulting in poor outcomes and a deterioration in the quality of treatment given.
As a result, many disadvantaged groups are unable to obtain essential medical treatment, while the healthcare system strains to satisfy their demands.
Again, with international aid remaining inadequate, Nigeria’s capacity to support its citizens’ health needs is further hampered.
The Nigerian health system would struggle to provide residents with fair access to quality healthcare services if enough funds and resources are not provided.
Improving the Sustainability of Nigeria’s Health Financing Model
Nigeria’s health finance mechanism is unsustainable, resulting in a crisis that has left millions of Nigerians without access to essential healthcare services.
The government, hospitals, HMOs, etc. must consider cost recovery and other activities to increase the sustainability of the Nigerian health finance system.
Changes in tax structures and health insurance enrolment procedures, as well as increased cost efficiency through the widespread application of digitalization tactics, might be included in these projects.
Furthermore, the government must enhance its investment in public-private partnerships to bolster rural service delivery systems, notably primary healthcare.
Finally, increased inter-sectoral coordination and collaboration among all stakeholders can aid in the creation of more effective resource use and the acceleration of sustainable growth within Nigeria’s health sector.
Conclusion
In summary, the Nigerian model of health finance leaves much to be desired – and it is becoming increasingly clear that if this country is to attain sustainable healthcare delivery, the existing system must alter.
The government must acknowledge the necessity of adequate health expenditure and invest resources accordingly.
It must also develop policies that increase access to high-quality healthcare, focus financial resources on healthcare-related initiatives, and support research into novel therapies.
A healthy population is a productive one, and this should be at the centre of every policy aimed at making Nigeria a better place.
This article is written by Ikechukwu Dominic Okoh