Nigeria’s health sector is facing sharp criticism over what stakeholders described as persistent underfunding and poor budget implementation, after only ₦36 million was released from the ₦218 billion capital allocation to the Federal Ministry of Health in the 2025 budget, a performance rate of just 0.016 per cent.
The disclosure, made by Coordinating Minister of Health and Social Welfare, Prof. Muhammad Pate, during the ministry’s 2026 budget defence before the House of Representatives Committee, has intensified concerns about fiscal discipline in the sector.
Dr Muhammad Lecky, who spoke on behalf of the Health Sector Reform Coalition Nigeria (HSRC) during a press briefing on Friday in Abuja said despite the 2025 underperformance, the proposed 2026 allocation to the ministry stands at ₦2.915 trillion out of a ₦58.47 trillion federal budget, representing 4.98 per cent of total expenditure. This falls significantly short of the 15 per cent benchmark Nigeria committed to under the 2001 Abuja Declaration.
He described the situation as one of the most troubling fiscal patterns in recent years, warning that weak capital releases undermine infrastructure upgrades, medical equipment procurement, digital health systems, and workforce development.
He further said that Budget Office data show a steady decline in capital implementation over the past four years: 40.69 per cent in 2021; 35.79 per cent in 2022; 17.30 per cent in 2023; and 32.20 per cent in 2024 — with 2025 emerging as the worst-performing year. The four-year average stands at 31.49 per cent.
Stakeholders also raised concerns over more than ₦92 billion in “bulk capital votes” in the 2026 proposal without detailed breakdowns, warning that opaque allocations may hinder transparency and timely releases.
Compounding the challenge Dr Lecky said is declining donor support for HIV, malaria, tuberculosis and immunisation programmes.
Meanwhile, out-of-pocket payments account for over 70 per cent of health spending, and less than 20 per cent of Nigerians are covered by health insurance.
The coalition has called for legislative investigation into the 2025 capital release failure, increased allocation to at least 10 per cent of the budget, and stronger oversight to ensure predictable funding.
Without decisive reforms in domestic financing and budget execution, experts warn that Nigeria’s Universal Health Coverage ambitions may remain out of reach.
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