Former Vice President Yemi Osinbajo says government spending alone cannot meet Nigeria’s healthcare needs as policymakers, investors and development partners explore new financing models to expand access to care.
LAGOS — Former Vice President Yemi Osinbajo has called for innovative financing mechanisms to strengthen Nigeria’s healthcare system, saying government spending alone cannot address the country’s healthcare funding challenges.
Speaking at a roundtable on Innovative Financing Models for Africa’s Healthcare Systems, organised by Future Perspectives in partnership with the Gates Foundation in Lagos on June 10, 2026. Osinbajo said government funding was insufficient to meet growing healthcare needs.
“Government spending alone can never address the scale of the challenge,” he said, adding that “most Nigerians continue to rely on out-of-pocket payments.”
Osinbajo said the objective of the roundtable was to identify “practical ways to finance healthcare through innovative and sustainable mechanisms.”
The hybrid event brought together senior government officials, development finance institutions, financial institutions, investors, capital market leaders and healthcare executives to discuss ways of closing healthcare financing gaps and mobilising sustainable investment in the sector.
Delivering the keynote address on behalf of the Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), Dr. Abdu Mukhtar, said only 10 to 12 percent of Nigerians currently have health insurance.
Mukhtar said partnerships with institutions including Afreximbank and the European Investment Bank were helping unlock billions of dollars in potential investment for the healthcare sector. He also highlighted financing challenges facing smaller healthcare businesses.
“There is a missing middle, many businesses need just $2–5 million to grow, but struggle to access capital,” he said.
Representing the Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority (NSIA), Aminu Umar-Sadiq, Dr. Tolulope Adewole, Managing Director and Chief Executive Officer of MedServe, said affordability remains one of the biggest barriers to healthcare access.
“The bigger problem sits on the demand side,” Adewole said, adding that “collaboration is what will take us out of this challenge.”
Participants from the investment community also argued that greater private sector involvement would be necessary to bridge the sector’s financing gap.
Managing Director and Chief Executive Officer of AfyA Care, Dapo Akisanya, said healthcare could be structured as “a profitable and scalable sector” but would require disciplined financing, impact investing and blended finance to support growth.
Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, said government resources alone would be insufficient to meet the sector’s financing needs.
“Government funding is wholly inadequate, and private capital is essential,” Balogun said, adding that healthcare requires “patient, long-term financing,” which capital markets are well positioned to provide.
Senior Investment Officer at the International Finance Corporation (IFC), Chishamiso Mawoyo, said healthcare financing across Africa should increasingly be provided in local currencies because healthcare providers primarily serve domestic populations.
Ekenem Isichei, Deputy Director at the Gates Foundation, said financing should ultimately translate into measurable outcomes.
“Financing must translate to real impact,” he said, stressing that resources should deliver on “lives saved and livelihoods improved.”
World Bank Senior Health Financing Specialist Dr. Olumide Okunola underscored the importance of strengthening public financing.
“Without strong public financing, everything else is limited,” he said, while calling for reduced reliance on out-of-pocket healthcare spending.
Closing the session, Future Perspectives Co-Founder Yemi Asekun said discussions at the roundtable would be translated into “practical, actionable financing models,” including potential structures for a national healthcare investment platform.
Nigeria’s healthcare system has long faced funding constraints, with out-of-pocket spending accounting for a large share of health expenditure. Policymakers have increasingly sought to expand health insurance coverage and attract private investment to improve access to affordable healthcare and strengthen the country’s health system.
