Raising and Managing Funds for Healthcare in Nigeria: Strategies for the Post-USAID Era

Abstract

Nigeria’s healthcare system faces significant challenges, including inadequate funding, poor infrastructure, and limited access to quality care. With the gradual withdrawal of donor support, particularly from the United States Agency for International Development (USAID), the country must adopt innovative and sustainable strategies to finance its healthcare sector. As of 2023, Nigeria’s healthcare expenditure stands at just 4% of its GDP, far below the World Health Organization’s (WHO) recommended 15% (WHO, 2023). Global Health Expenditure Database]. This funding gap has resulted in poor health outcomes, with Nigeria accounting for 20% of global maternal deaths and 25% of under-five deaths (UNICEF, 2023). This policy brief proposes a multi-pronged approach to raising and managing healthcare funds in Nigeria, drawing on successful models from other countries. Key recommendations include: i. Government should expand health insurance coverage, increase tax revenues, and leverage public-private partnerships (PPPs) to boost healthcare funding, ii. Introduce sin taxes, diaspora bonds, and social impact bonds to generate additional revenue, iii. Strengthen governance, transparency, and accountability in healthcare spending and iv. Learn from countries like Rwanda, Ghana, and Thailand, which have successfully transitioned from donor dependency to self-sustaining healthcare systems.