- Salako Calls for Stronger Public-Private Financing to Transform Nigeria’s Healthcare Sector
29th July 2026-The Honourable Minister of State for Health and Social Welfare, Dr. Iziaq Adekunle Salako, has called for stronger collaboration between government, financial institutions and private investors to unlock the capital required to transform Nigeria’s healthcare system and accelerate universal health coverage.
Speaking as the Special Guest of Honour on Tuesday 28 July,2026, at the opening ceremony of the FCMB Healthcare Summit 2026 in Lagos, Dr. Salako said sustainable financing remains one of the most critical challenges confronting Nigeria’s health sector, stressing that government reforms must be complemented by strategic private investment to build modern hospitals, diagnostic centres and local pharmaceutical manufacturing capacity.
The summit, themed “Financing Growth. Unlocking Opportunity. Building the Future of Healthcare,” brought together healthcare providers, investors, regulators and financial institutions to explore innovative financing models for the sector.
The Minister noted that the Federal Government, under the leadership of President Bola Ahmed Tinubu, has established a strong policy and legislative framework to support healthcare financing and investment through ongoing reforms in the sector.
He highlighted the achievements of the Basic Healthcare Provision Fund (BHCPF) established under the National Health Act 2014, noting that over ₦339 billion has been disbursed over the last twelve years, with ₦235 billion released within the past three years under the current administration’s Health Sector Renewal Investment Initiative.
According to him, the latest disbursement of ₦32.9 billion is currently supporting more than 8,300 Primary Healthcare Centres across Nigeria, with plans underway to expand coverage to approximately 13,000 facilities nationwide, disclosing that the Government is also proposing an increase in the statutory allocation to the BHCPF from one percent to two percent of the Consolidated Revenue Fund, describing the move as a demonstration of government’s commitment to strengthening healthcare financing while encouraging greater private sector co-investment.
He urged state governments to fully comply with their counterpart funding obligations under the National Health Act to ensure sustainable financing of healthcare services across the country.
Speaking on progress in health insurance, the Minister said implementation of the National Health Insurance Authority (NHIA) Act 2022 has significantly expanded access to health insurance, with enrolment increasing to over 22 million Nigerians, representing a 35 percent increase since 2023, however he expressed concern that out-of-pocket expenditure still accounts for about 71 percent of total health spending in Nigeria, compared to the global benchmark of 15–20 percent.
To improve compliance with mandatory health insurance, Dr. Salako disclosed that the Federal Government has introduced a Presidential directive requiring private companies bidding for federal contracts to present valid NHIA health insurance certificates as part of procurement requirements.
The Minister further highlighted the Health Sector Renewal Investment Initiative and the Health Sector Strategic Blueprint 2024–2027, describing them as the foundation of Nigeria’s ongoing healthcare transformation through a Sector-Wide Approach that has already delivered more than 21 strategic policies, expanded tertiary health institutions, established cancer centres of excellence and accelerated investments in primary healthcare infrastructure.
He also highlighted the recently launched Human Capital Opportunities for Prosperity and Equity (HOPE) programme, valued at $1.5 billion, which aims to strengthen governance, education and primary healthcare delivery across the country.
On healthcare industrialisation, Dr. Salako said the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC) is driving efforts to reduce Nigeria’s dependence on imported medicines, diagnostics and medical devices by increasing local production to 70 percent by 2030.
He noted encouraging progress in the pharmaceutical sector, with the number of registered pharmaceutical companies increasing from 180 in 2022 to over 200 by 2025, while local manufacturing now accounts for nearly 50 percent of healthcare products consumed in Nigeria, disclosing that Nigeria now hosts Africa’s second-largest Rapid Diagnostic Test manufacturing plant and is preparing to establish the first Active Pharmaceutical Ingredients (API) manufacturing plant in Sub-Saharan Africa.
He also announced the implementation of the National Power for Health Initiative to address energy challenges affecting health facilities nationwide, alongside the rollout of the Medipool Programme, a 20-year public-private partnership designed to strengthen local manufacturing through guaranteed public procurement.
Dr. Salako highlighted several financing opportunities already available to healthcare investors, including the Central Bank of Nigeria’s ₦100 billion Healthcare Sector Intervention Facility, the €50 million Bank of Industry–EIB Global Human Development Accelerator Programme, and the African Development Bank’s $200 million facility for growth-sector enterprises.
The Minister urged healthcare providers and investors to strengthen corporate governance, improve financial reporting, leverage blended financing opportunities and focus investments on health insurance expansion, diagnostics, primary healthcare and pharmaceutical manufacturing.
He commended the launch of the FCMB Dedicated Healthcare Fund, describing it as a strategic addition to the country’s healthcare financing architecture that aligns commercial capital with government policy and public financing mechanisms, stressing that government alone cannot finance the future of Nigeria’s healthcare system, just as the private sector cannot succeed without supportive government policies, regulatory certainty and risk-sharing mechanisms.
Declaring the FCMB Healthcare Summit open, Dr. Salako described it as a platform for converting partnerships into tangible investments that will strengthen healthcare delivery, expand access to quality services and stimulate economic growth through healthcare industrialisation and finally commended FCMC, the Healthcare Federation of Nigeria and all stakeholders for their commitment to advancing healthcare financing and building a more resilient health system for Nigeria.
Ado Bako
Assistant Director, Information and Public Relations.
