As 2020 gets underway, we take a closer look at what Nigeria wants to spend on health as contained in the country’s approved 2020 budget.
In his address to lawmakers, President Muhammadu Buhari said his administration is interested in improving the lots of the health sector and this was a major reason for the increase in value-added tax (VAT) rate draft as communicated through the Finance Bill, from 5% to 7.5%.
As such, the 2020 Appropriation Bill is based on this new VAT rate. The additional revenues will be used to fund health, education and infrastructure programmes. As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well,” Buhari said.
Basic Health Care Provision Fund
Components of the budget that directly affect the health sector in Nigeria include the N44.5 billion earmarked for the Basic Health Care Provision Fund (BHCPF). The goal of the fund is to substantially increase revenue and improve Primary Health Care (PHC) as contained in the country’s National Health Act.
In September 2019, the Nigerian government through the Minister of Health, Dr Osagie Ehanire, launched the first phase of the disbursement of N13.775 billion of the BHCPF to states through the National Health Insurance Scheme (NHIS) gateway.
According to the minister explained that the funds would be administered through three gateways; namely NHIS, National Primary Healthcare Development Agency (NPHCDA), and the Federal Ministry of Health (FMoH).