Osinbajo Calls for New Ways to Fund Healthcare in Nigeria

Former Vice President of Nigeria, Yemi Osinbajo, has stressed the need to rethink how we fund healthcare. He pointed out that "government spending alone can never address the scale of the challenge."

Mr Osinbajo, who is also a professor, mentioned that "most Nigerians continue to rely on out-of-pocket payments."

He said the aim of the roundtable was to find "practical ways to finance healthcare through innovative and sustainable mechanisms."

Mr Osinbajo spoke at a roundtable on Innovative Financing Models for Africa’s Healthcare Systems in Lagos on June 10. This event was organised by Future Perspectives, a group he founded.

The event brought together important figures, including government officials, finance institutions, investors, capital market leaders, and healthcare executives. They gathered to tackle the ongoing funding problems in Nigeria’s healthcare system.

Abdu Mukhtar, national coordinator for the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), represented the Minister of Health and Social Welfare, Ali Pate. In his keynote, he pointed out that "only 10 to 12 per cent of Nigerians have health insurance."

Mr Mukhtar highlighted efforts to gather large-scale funding, mentioning partnerships with Afreximbank and the European Investment Bank. These are helping to unlock billions in potential investments.

He also addressed the issues faced by smaller healthcare providers. He noted that "there is a missing middle. Many businesses need just $2, 5 million to grow, but struggle to access capital."

Tolulope Adewole, MD/CEO of MedServe, represented Aminu Umar-Sadiq, the MD/CEO of the Nigeria Sovereign Investment Authority (NSIA). He stated that "the bigger problem sits on the demand side," pointing out that affordability is a big issue in a country where many people live on low incomes.

He stressed that "collaboration is what will take us out of this challenge" and added that sustainable projects can attract long-term capital.

From an investor’s view, Dapo Akisanya, MD/CEO at AfyA Care, underlined the need to build solid healthcare businesses. He said, "healthcare can be structured as a profitable and scalable sector," but it needs careful financing and coordination. He urged for more "impact investing and blended financing" to help growth along the value chain.

Bolaji Balogun, CEO of Chapel Hill Denham, pointed out the significance of private capital. He said, "government funding is wholly inadequate, and private capital is essential."

He added that healthcare needs "patient, long-term financing," best supported by capital markets. These markets offer "the deepest pools of capital and transparency investors need."

Chishamiso Mawoyo, a senior investment officer at the International Finance Corporation (IFC), talked about structural problems in Africa’s healthcare. But he also mentioned that these challenges present chances for investment and innovation. He highlighted the need for local currency financing, saying, "healthcare providers serve local populations, so financing must reflect that reality."

Ekenem Isichei, deputy director at the Gates Foundation, spoke about the need for financing to lead to real results. He warned that resources must deliver on "lives saved and livelihoods improved." He added that philanthropy should "catalyse systems that unlock capital more effectively," especially through blended finance approaches.

Olumide Okunola, a senior health financing specialist at the World Bank, pointed out the importance of public financing. He said, "without strong public financing, everything else is limited," and he stressed the need to cut down on out-of-pocket spending.

To close the session, Yemi Asekun, co-founder of Future Perspectives, reiterated that "capital always follows capacity and management." He said the next step is to turn insights from the discussion into "practical, actionable financing models," which could include plans for a national healthcare investment platform.