…as out-of-pocket costs price millions out of healthcare
Leading health policy experts at SYNLAB Webinar have called for a fundamental overhaul of Nigeria’s healthcare financing system, warning that millions of citizens are being priced out of care due to heavy reliance on out-of-pocket payments and limited insurance coverage.
The call was made during a webinar hosted by SYNLAB Nigeria, themed “Enabling Healthcare Financing for Complete Patient Care,” where stakeholders outlined urgent reforms needed to make healthcare more accessible, affordable, and preventive.
Nigeria currently funds about 70 percent of its healthcare through direct household spending, while fewer than 10 percent of citizens are covered by any form of health insurance. Experts say this model not only discourages early care-seeking but also pushes families into poverty when illness strikes.
Speaking at the event, Dr. Adeniyi Adeniran, health financing expert and National Professional Officer, WHO, Nigeria, described Nigeria’s healthcare financing structure as inadequate across its core functions, including revenue generation, pooling of funds, and strategic purchasing of services.
He proposed the adoption of innovative financing models such as blended finance, outcome-based funding, and digital health solutions to bridge funding gaps and improve efficiency.
Adeniran noted that Innovative financing is not a luxury for wealthy systems rather it is essential for constrained systems like Nigeria’s.
Also speaking, Dr. Olumuyiwa Olusanya, healthcare consultant and managing partner at Insignia Health, criticized the current system for focusing almost entirely on treatment rather than prevention. According to him, delaying care until illness becomes severe significantly increases both costs and health risks.
He said that Nigeria is financing the end of the story and ignoring the beginning, urging policymakers to integrate preventive screenings and diagnostics into standard insurance packages.
Olusanya called on the National Health Insurance Authority (NHIA) to enforce mandatory health insurance and ensure that preventive care is included in all benefit packages. He also recommended adopting financing models such as capitation and outcome-based payments to improve efficiency and health outcomes.
Bringing a technology-driven perspective, Jennie Nwaokoye, founder of Clafiya, highlighted how digital health savings platforms are helping Nigerians better manage healthcare costs.
Clafiya enables users to save incrementally for medical expenses while negotiating discounted healthcare services through pooled demand. The platform reportedly reduces out-of-pocket costs by up to 40 percent and employer healthcare expenses by as much as 60 percent.
She highlighted that a key partnership between Clafiya and SYNLAB Nigeria allows users to access laboratory tests at discounted rates, demonstrating how collaboration between diagnostics providers and fintech platforms can expand access to care.
All the Speakers agree that Nigeria must transition from a fragmented, treatment-focused system to a coordinated model that supports the full spectrum of care; from prevention and diagnosis to treatment and follow-up.They stressed that achieving this transformation will require collaboration among government agencies, insurers, healthcare providers, and private sector innovators.
