The Coordinating Minister of Health and Social Welfare, Prof. Mohammed Ali Pate, has said Nigeria is targeting to exit from undue reliance on external funds for the implementation of health sector programmes and initiatives.

He said that Nigeria has, for a very long time, depended on external financing of her healthcare programmes but is now making efforts to ensure that it reverses this situation in the nearest future.

Pate said that the Federal Government’s tax reform will boost health funding, adding that the recent tax bill signed by the president aims to increase government revenue, which will in turn finance basic services like healthcare and education.

In furtherance of the initiative to scale up health sector funding, the Federal Government on Monday announced the disbursement of  over a six-month period to enhance access to quality healthcare services across Nigeria.

The minister disclosed this at the conclusion of the 11th meeting of the Ministerial Oversight Committee (MOC) on health, held in Abuja.

According to Pate, the funds — sourced from the Basic Health Care Provision Fund (BHCPF) –will be released in two tranches:  for the first quarter and another  for the second quarter of the year.

“The Ministerial Oversight Committee (MOC) has ratified two critical disbursement approvals to ensure seamless implementation of the Basic Health Care Provision Fund (BHCPF) in 2025.

“Firstly, the committee approved the application of N32,880,443,906.00 drawn from the first quarter 2025 release towards the implementation of BHCPF activities for both the first and second quarters of the year.

“This represents N16,440,221,953.00 allocated per quarter, in accordance with the provisions of the 2020 BHCPF Guidelines, to ensure continuity and effective use of available resources,” he said.

In addition, the MOC granted approval for the disbursement of N32,880,443,906.25 as the BHCPF Implementation Funds for the third quarter of 2025. 

This amount covers the cumulative allocations for April to June 2025 and is expected to be disbursed by the end of August 2025 or as soon as the funds are released by the appropriate authorities.

These approvals reaffirm the MOC’s commitment to timely and efficient health financing to strengthen primary health care delivery and advance progress towards Universal Health Coverage in Nigeria.

Pate, while speaking to journalists at the end of 11th Ministerial Oversight Committee meeting, said that the Federal Government has allocated substantial resources to the health sector in the 2025 budget, including funds to provide essential drugs for those testing positive for various diseases. 

He explained that the tax reform is crucial in reducing dependence on external financing.

“When you create a simplified tax bill, you are increasing government revenue, and it is that government revenue that will finance issues like health, like education, and other things.”

“If we can collect more of the resources that are due from taxes, then governments at all levels will have the resources to be able to invest in health,” he said.

 He said: “The Federal Government has put resources in the 2025 budget, and the procurement is on the way to provide those drugs to meet up those additional needs arising from the higher testing.”

He noted the importance of a collaborative approach between the Federal Government, states, and local governments in rebuilding Nigeria’s health system. 

“We see Federal Government, states and local governments are very integral partners in this effort that we are making. No one level can do it alone.”

Pate also explained that the tax reform is crucial in reducing dependence on external financing. “When you create a simplified tax bill, you are increasing government revenue, and it is that government revenue that will finance issues like health, like education, and other things.”

Also, the guidelines for dissemination of BHCPF received provisional approval at the 10th MOC and is scheduled to occur before the end of third quarter of 2025, offering an updated framework to strengthen implementation, coordination and accountability. 

The MOC resolved to increase the visibility of health sector reforms and positive outcomes, including through improved strategic communication, documentation of success stories, and enhanced media engagement.

Speaking earlier, the Minister of State for Health, Dr. Iziaq Adekunle Salako, noted that progress is being made in Nigeria’s health sector reforms, particularly in the implementation of the Basic Healthcare Provision Fund (BHCPF).

According to Salako, the Ministerial Oversight Committee’s involvement in the reforms reflects the level of inclusiveness and transparency being employed by the Federal Ministry of Health and Social Welfare. 

“The military oversight committee reflects the level of inclusiveness and transparency that the Federal Ministry of Health and Social Welfare is using in implementation of the basic healthcare provision fund,” he said.

Salako also noted that this approach is driving more involvement at the sub-national level, civil society organizations, and synergy among government agencies. 

“It’s driving more involvement of the civil society organisations and also it’s showing some level of synergy among the various agencies of government that are involved,” he said.

The minister maintained the impact of the presidential directive on unlocking the healthcare value chain, saying it’s being felt and reported.

“You can also see that from that meeting, the impact of the presidential order around the unlocking the healthcare value chain is being felt, it’s being reported and it’s being felt,” he said.

Salako said the revitalization of primary healthcare is a key agenda of President Bola Tinubu’s administration, and results are being seen. “We also see the results and so these are key messages that is coming out from this embassy,” he said.

Meanwhile, the Ekiti State Commissioner for Health, Dr. Oyebanji Filani, who is also the Chairman of the Health Commissioners’ Forum, commended the efforts of the Federal Government and other stakeholders in improving the healthcare sector.