A healthcare analyst at PAC Research, Ohireme Ehmika, has identified poor budget execution as the major challenge facing Nigeria’s healthcare sector, warning that inadequate implementation continues to undermine progress despite increased allocations.
Speaking during an interview on ARISE News on Thursday, Ehmika said while funding gaps exist, the more critical issue lies in the government’s inability to effectively deploy allocated resources.
“The problem particularly is an execution problem,” he said.
According to him, although Nigeria has set a benchmark of allocating 15 percent of its budget to healthcare, actual spending remains significantly lower.
“The benchmark is still hovering between 5 to 6 percent… those margins are grossly inefficient for healthcare initiatives,” he explained.
He further noted that even when funds are allocated, they are not fully released or utilized, limiting the impact on healthcare delivery.
“Last year… there was an earmark of 218 billion… but only 36 billion was actually released,” he said.
Ehmika emphasized that this persistent under-execution has contributed to critical gaps in infrastructure and manpower, particularly as Nigeria’s population continues to grow.
“Nigeria’s population is currently over 200 million… but our doctor-patient ratio is at 4 per 10,000, which is inefficient,” he stated.
He added that inadequate infrastructure, including limited hospital bed capacity, further reflects the consequences of poor implementation.
“Bed space capacity is currently at 1 per 1,000… these are major constraints,” he said.
Beyond infrastructure, Ehmika pointed out that weak execution has also affected healthcare financing systems, leaving a large portion of Nigerians to pay out-of-pocket for medical services.
“About 60 percent of financing for the sector is out-of-pocket,” he noted.
He explained that low health insurance penetration, driven by affordability challenges and limited awareness, continues to worsen the burden on individuals and small businesses.
“Health insurance capacity is still under 10 percent… SMEs see it more as a discretionary cost,” he said.
Ehmika warned that without improvements in execution, increased funding alone would not translate into better healthcare outcomes.
“Constraints actually hamper the ability… to carry out its activities,” he said.
He, however, acknowledged ongoing efforts by the government to improve funding through initiatives such as public-private partnerships and targeted healthcare financing programs.
Despite these efforts, he maintained that effective implementation remains the key to transforming the sector.
Triumph Ojo
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