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Senate passes bill to boost healthcare fund for second reading

The Senate has taken a major step toward strengthening Nigeria’s primary healthcare system after it passed for second reading a bill seeking to increase the Basic Health Care Provision Fund from one per cent to two per cent of the Consolidated Revenue Fund of the Federal Government.

The proposed legislation, titled “A Bill for an Act to Amend the National Health Act, No. 8, 2014 to Increase the Basic Health Care Provision Fund from One Percent to Two Percent of the Consolidated Revenue Fund; and for Related Matters, 2025 (SB. 886),” was sponsored by Senator Ipalibo Banigo (PDP, Rivers West).

The BHCPF, which was established under Section 11 of the National Health Act, 2014, represents Nigeria’s first statutory mechanism for sustainable health financing and provides a guaranteed minimum package of health services to all Nigerians, especially the poor and vulnerable.

Presiding over the plenary, Senate President Godswill Akpabio referred the bill to the Senate Committee on Health (Secondary and Tertiary) for further legislative work and directed the committee to report back within four weeks.

Leading the debate on the general principles of the bill, Senator Banigo argued that the amendment is both constitutionally and morally justified, as the security and welfare of citizens remain the primary purpose of government, in line with Section 14(2) of the 1999 Constitution (as amended).

She noted that the current 1% allocation has become inadequate to meet growing health demands, particularly with the decline in donor support and Nigeria’s impending transition from Gavi, the Vaccine Alliance, which would significantly increase the country’s financial responsibility for immunization, maternal health, and disease control.

She strongly emphasized the inadequacy of the current funding level, stating: “With over 75% of health spending in Nigeria still financed out-of-pocket, the 1% allocation has proven insufficient to meet national needs,” adding that “Increasing the BHCPF to 2% is a strategic and timely intervention that ensures sustainability and national ownership of our health priorities.”

Banigo highlighted that the proposal was endorsed at the National Dialogue on Health Financing convened in September 2025 by the National Health Insurance Authority, in collaboration with the Federal Ministry of Health, the Ministry of Finance, and the Nigeria Governors’ Forum.

She stressed that the increase would strengthen primary health facilities, enhance the recruitment and retention of health workers, and guarantee access to essential medicines and services, particularly for women, children, and rural communities.

The Senator also outlined the expected benefits of the amendment, which include: strengthening primary healthcare systems and improving access to quality, affordable care; reducing catastrophic out-of-pocket spending for Nigerian households; safeguarding immunization and essential services amid declining donor aid; enhancing epidemic preparedness and community health resilience; and promoting economic productivity through a healthier workforce.

Banigo assured the Senate that the transparency framework of the existing Act would be maintained, with the Fund jointly administered by the National Primary Health Care Development Agency and the NHIA, alongside state and local governments. She confirmed that annual reports and audited accounts would continue to be submitted to the National Assembly for oversight.