Stakeholders and analysts in the health sector have warned of a significant funding gap for Universal Health Coverage (UHC) following the allocation of ₦2.48 trillion to the sector in the proposed 2026 budget.
They spoke to reporters in Abuja on Saturday while reacting to the 2026 Appropriation Bill presented by President Bola Tinubu to the National Assembly on Friday.
The stakeholders noted that the proposed allocation falls far short of the 15 per cent benchmark agreed by African Union member states under the 2001 Abuja Declaration on Health Financing.
They said the impact of the funding shortfall would be felt most acutely in maternal and child health outcomes, an area where Nigeria continues to face serious challenges.
According to them, if Nigeria had met the 15 per cent target, about ₦8.73 trillion would have been allocated to the health sector in 2026. This leaves an estimated funding gap of approximately ₦6.25 trillion.
They further observed that although the allocation is similar in nominal terms to that of 2025, its share of the overall national budget has declined, raising concerns about the sector’s capacity to meet the needs of a growing population amid inflation and currency pressures.
President Tinubu proposed an allocation of ₦2.48 trillion to the health sector in the ₦58.18 trillion 2026 Appropriation Bill, representing about 4.3 per cent of the total budget.
Presenting the budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity”, the President identified health as a priority sector alongside security, education, infrastructure and agriculture.
He said the allocation would support healthcare delivery, disease prevention, maternal and child health services and health system strengthening, while ensuring accountability in the use of domestic and donor resources.
However, a review of federal health allocations over the past five years shows that while funding increased from ₦550 billion in 2021 to ₦2.48 trillion in 2025, the sector’s share of the total budget has remained low, hovering between four and five per cent, far below the Abuja Declaration target.
Experts noted that persistent underfunding continues to constrain primary healthcare services, maternal and child health programmes and progress toward UHC.
Nigeria’s health financing framework is anchored on the Basic Health Care Provision Fund (BHCPF), established under the National Health Act of 2014 to ensure sustainable funding for primary healthcare, especially for women, children and vulnerable populations.
The BHCPF is financed through at least one per cent of the Consolidated Revenue Fund, complemented by development partner contributions and grants.
Experts warned that low overall budgetary allocation to health could limit the effectiveness of the BHCPF, particularly at the primary healthcare level where most maternal, newborn and child health services are delivered.
A health policy analyst, Dr Ibrahim Musa, said that although the BHCPF remains a critical reform, its impact is constrained by broader fiscal pressures.
“The BHCPF cannot function optimally in isolation. When total health spending is low, fund releases become unpredictable, counterpart funding at the state level weakens, and primary healthcare facilities struggle to sustain essential services,” he said.
He noted that services such as antenatal care, skilled birth attendance, immunization and basic emergency obstetric care are among those most affected by funding shortfalls.
Similarly, the National Health Insurance Authority (NHIA) Act, which makes health insurance mandatory for all Nigerians and legal residents, requires sustained public financing to expand coverage, particularly for poor and informal-sector households.
A health economist and Monitoring and Evaluation specialist with the Africa Health Budget Network (AHBN), Mrs Maimuna Abdullahi, said the success of NHIA reforms depends largely on adequate budgetary support.
“Mandatory health insurance is a major step forward, but without sufficient public funding, many states will struggle to enroll vulnerable groups.
“Universal Health Coverage will remain elusive if insurance is out of reach for the poorest households,” she said.
She added that inadequate investment could perpetuate high out-of-pocket health spending, exposing families to catastrophic health expenditures.
A public health economist, Dr Amina Lawal, also expressed concern that allocating just over four per cent of the national budget to health undermines efforts to reduce preventable maternal and child deaths.
“Maternal and child health indicators are highly sensitive to funding.
“Without increased investment in primary healthcare, skilled health workers, medicines and referral systems, progress will remain slow,” she said.
In the same vein, a maternal health advocate, Mrs Grace Okonkwo, said women and children are often the first to suffer when health facilities are under-resourced.
According to her, Universal Health Coverage cannot be achieved if primary healthcare remains underfunded.
“Investment in maternal and child health is also an investment in productivity and national development,” Okonkwo said.
