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🇳🇬 Nigeria /Health & Science

Nigerian struggle with rising medical costs amid shrinking incomes

From The Punch · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • Millions of Nigerians struggle to access quality healthcare as household incomes fall and medical costs rise, forcing many to delay or forgo treatment.
  • The World Health Organization highlights that health insurance is crucial for financial risk protection, aiming to eliminate barriers to care and prevent impoverishment.
  • Nigeria's National Health Insurance Authority has seen its policyholder numbers increase to 22.03 million, signaling progress toward Universal Health Coverage despite widespread reliance on out-of-pocket payments.

Rising medical costs and shrinking household incomes in Nigeria are making essential healthcare increasingly inaccessible for millions, particularly low-income earners who rely heavily on out-of-pocket payments. For many families, illness has become a financial crisis, forcing difficult choices between delaying treatment, seeking cheaper alternatives, or foregoing care altogether.

Globally, the share of the global population experiencing financial hardship due to out-of-pocket health spending, defined as exceeding 40 per cent of a household discretionary budget, fell from 34 per cent in 2000 to 26 per cent in 2022.

— World Health OrganisationStatistics on global financial hardship caused by healthcare expenses.

The World Health Organization defines health insurance as a vital mechanism for financial risk protection, where regular contributions before illness prevent the full cost of care at the time of service. This system aims to eliminate direct user fees, ensuring that healthcare payments do not compromise people's ability to meet basic needs. Globally, while progress has been made in reducing financial hardship due to out-of-pocket health spending, billions still face such difficulties, with the poorest disproportionately affected.

Despite this progress, an estimated 2.1 billion people still faced financial hardship in 2022. Of these, 1.6 billion were pushed into or further impoverished by direct healthcare costs.

— World Health OrganisationHighlighting the persistent scale of financial hardship related to healthcare costs.

Despite these challenges, Nigeria is making strides toward Universal Health Coverage. The National Health Insurance Authority reported that the number of policyholders has climbed to 22.03 million, indicating significant momentum in the country's efforts to expand insurance coverage. This growth is crucial in a nation where reliance on direct payments for medical services remains a significant burden for a large segment of the population.

Financial hardship remains highly unequal: among the poorest, three out of four face financial hardship due to healthcare costs, compared with one in 25 among the wealthiest in 2022.

— World Health OrganisationIllustrating the disproportionate impact of healthcare costs on the poorest populations.
DistantNews Editorial

Originally published by The Punch in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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