Nigeria: Senate Pushes 2 Percent BHCPF Allocation, Ssb Levy to Boost Health Financing

The Senate in Nigeria has approved two significant health financing bills aimed at increasing domestic funding for primary healthcare and generating additional revenue for disease prevention and health promotion. Senator Ipalibo Harry Banigo, chair of the Senate Committee on Health, explained that the measures are intended to reduce reliance on external funding and strengthen Nigeria's domestic health financing system.

The first bill, SB 86, seeks to increase the allocation to the Basic Health Care Provision Fund (BHCPF) from the current one percent to two percent of the Consolidated Revenue Fund of the Federation. The second bill, SB 713, proposes a Sugar-Sweetened Beverages (SSB) Levy, which would replace the current flat excise duty of N10 per litre with a percentage-based levy. The proposed levy would allocate 50 percent of its revenue to health promotion and disease prevention.

Both bills have passed through the third reading in the Senate and are now awaiting approval from the House of Representatives. Banigo stated that these legislative proposals are complementary components of a broader health financing framework that aims to build a more resilient and domestically funded health system. She emphasized that health financing is crucial for Nigeria's economic development, as a healthy population contributes to productivity and economic growth.

The senator highlighted that inadequate investment in healthcare has repercussions for education, productivity, and economic development, as sick individuals are unable to attend school or contribute optimally to the economy. She stressed that the challenge of health financing extends beyond inadequate resources, encompassing issues such as predictability, planning, national ownership, and resilience.

Banigo emphasized that the reforms should translate into tangible improvements in healthcare for vulnerable groups, including children, women, older people, workers, and other marginalized populations. She acknowledged the contributions of development partners to health programs but stressed that domestic resources must become the foundation of Nigeria's health financing framework.

The Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, echoed the importance of increased investment in healthcare. He emphasized that Nigeria must make a deliberate choice to invest more in healthcare to build a quality and sustainable health system, acknowledging that poor funding at the primary healthcare level has contributed to infrastructure deterioration and healthcare worker shortages.

Pate encouraged governments to prioritize health investments, stating that actions should align with words to demonstrate a commitment to improving the healthcare sector.