Osinbajo calls for innovative healthcare financing in Africa

Former Nigerian Vice President Yemi Osinbajo has underscored the critical need for innovative financing models to address Africa's healthcare challenges, asserting that government spending alone cannot meet the scale of the problem. Speaking at a high-level roundtable in Lagos, Osinbajo noted that "government spending alone can never address the scale of the challenge" and that "most Nigerians continue to rely on out-of-pocket payments."

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government spending alone can never address the scale of the challenge

The event, organized by Future Perspectives, a foundation established by Osinbajo, brought together senior government officials, development finance institutions, financial institutions, investors, and healthcare executives. The primary goal was to identify "practical ways to finance healthcare through innovative and sustainable mechanisms."

Abdu Mukhtar, representing the Minister of Health and Social Welfare, Ali Pate, highlighted the significant access gap in Nigeria, stating that "only 10 to 12 percent of Nigerians have health insurance." He also pointed to ongoing efforts to mobilize large-scale financing through partnerships with institutions like Afreximbank and the European Investment Bank, which aim to unlock billions in potential investments. Mukhtar also identified a critical gap for smaller healthcare providers, noting a "missing middle" where businesses needing $2–5 million struggle to access capital.

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most Nigerians continue to rely on out-of-pocket payments

Tolulope Adewole, MD/CEO of MedServe, representing the Nigeria Sovereign Investment Authority (NSIA), emphasized that "the bigger problem sits on the demand side," with affordability being a key constraint for a population largely living on low incomes. Dapo Akisanya, MD/CEO at AfyA Care, stressed the importance of building viable healthcare businesses, suggesting that "healthcare can be structured as a profitable and scalable sector" through disciplined financing and ecosystem coordination. He called for increased "impact investing and blended financing."

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practical ways to finance healthcare through innovative and sustainable mechanisms

Bolaji Balogun, CEO of Chapel Hill Denham, emphasized the essential role of private capital, stating that "government funding is wholly inadequate, and private capital is essential." He advocated for "patient, long-term financing," best provided by capital markets, which offer "the deepest pools of capital and transparency investors need." Chishamiso Mawoyo, senior investment officer at the International Finance Corporation (IFC), also highlighted structural challenges across Africa's healthcare sector.

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only 10 to 12 per cent of Nigerians have health insurance