Nigeria’s total health expenditure rose to ₦10.42 trillion in 2024, even as out-of-pocket spending by households dropped slightly to 58.3 per cent of total health costs, according to the National Health Accounts (NHA) 2023–2024 report.
The report, released on Sunday in Abuja, showed that the 2024 out-of-pocket figure represents a marginal decline from 58.8 per cent recorded in 2023, signalling modest progress in reducing the financial burden of healthcare on Nigerians.
Findings from the report, presented at a Ministerial Oversight Committee meeting of the Basic Health Care Provision Fund, revealed that despite the slight improvement, 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 the previous year.
The NHA, jointly produced by the Federal Ministry of Health and Social Welfare, the National Bureau of Statistics, the Federal Ministry of Finance, the Budget Office, the Office of the Accountant-General of the Federation, the World Health Organisation and the Centre for Health Economics and Development, noted that total health spending increased significantly from ₦7.88 trillion in 2023 to ₦10.42 trillion in 2024.
According to the report, the rise in spending was driven by higher contributions from households, government and development partners. However, government health expenditure remained low, accounting for just 12.4 per cent of total health financing in 2024, while social health insurance contributions stood at five per cent, underscoring the limited reach of prepaid and pooled financing mechanisms.
The report also recorded a sharp increase in donor funding, which rose from 14 per cent in 2023 to 19 per cent in 2024. It noted, however, that most donor funds were managed directly by development partners rather than channelled through government systems.
In addition, capital expenditure accounted for only 10.5 per cent of total health spending in 2024, indicating continued underinvestment in health infrastructure and long-term system strengthening.
Health sector analysts said that while the gradual decline in out-of-pocket spending is a positive sign, the heavy reliance on household payments continues to expose millions of Nigerians to financial hardship when accessing healthcare.
They warned that women, children and low-income households remain particularly vulnerable to catastrophic health expenses, urging governments at all levels to expand health insurance coverage, increase public health funding and prioritise pooled financing mechanisms.
The NHA report is expected to inform policy decisions, guide resource allocation and support monitoring of Nigeria’s progress towards universal health coverage and improved financial risk protection.
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