Managing Director of the Nigeria Solidarity Support Fund, Dr. Fejiro Chinye Nwoko, has warned that Nigeria’s reliance on out-of-pocket healthcare payments is exposing informal sector workers to severe financial strain and economic vulnerability.
Speaking in an interview with ARISE News on Thursday, Nwoko highlighted the scale of the burden, noting that healthcare in Nigeria is largely financed directly by individuals.
According to her, “70% of health spending currently in our nation is out-of-pocket.”
She explained that this system places a heavy burden on informal workers, many of whom depend on unstable daily income and lack financial buffers.
Nwoko noted that because health expenses are often unexpected, individuals are forced to make immediate payments that disrupt their financial stability.
“Since their income is very small and is very inconsistent… if there is a need for health and they have to spend out-of-pocket, it’s going to lead to most times it leads to impoverishment.”
She stressed that such expenses frequently force individuals to divert money meant for business or daily survival toward medical care.
According to her, this creates a cycle where people are unable to recover financially after health shocks.
“They are going to be eating into their income, their business capital, and that can lead to temporary or permanent shutdown of the business.”
Nwoko emphasized that the absence of financial protection mechanisms leaves informal workers particularly exposed during medical emergencies.
She maintained that without intervention, out-of-pocket spending will continue to erode incomes and destabilize livelihoods.
“Health is something that you don’t plan for… and so if there is a need for health and they have to spend out-of-pocket, it’s going to lead to… impoverishment.”
She concluded that reducing out-of-pocket payments through broader health coverage is essential to protecting vulnerable populations from financial shocks tied to illness.
By Ojo Triumph
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