Nigerians face rising medical costs and challenges in health insurance access

Many families face financial crises when illness strikes, often leading to delayed treatment or no care at all. The World Health Organization defines health insurance as a prepaid, pooled financing mechanism that eliminates direct user fees and provides financial risk protection, which is crucial for universal health coverage. Despite global progress in reducing financial hardship from out-of-pocket health spending, an estimated 2.1 billion people still faced such hardship in 2022, with 1.6 billion pushed into or further impoverished by direct healthcare costs.

In Nigeria, the National Health Insurance Authority reported that policyholders increased to 22.03 million, indicating growing acceptance of health insurance. However, the Managing Director and Chief Executive Officer of SUNU Health Nigeria Limited, Dr. Moyosore Olomola, noted that weak enforcement of regulations and poor compliance by some healthcare providers hinder the quest for universal health coverage. He highlighted that structural and operational bottlenecks, including provider behavior demanding upfront payments despite valid insurance, undermine public trust and slow enrollment.

Research indicates that catastrophic health expenditures remain a significant problem in Nigeria, with over 90 percent of the population uninsured, leading to an