Nigeria boosts health budget by $200 million by 2025

Background to the budget decision

Faced with the interruption of U.S. aid, Nigeria, like several other African countries, faces major challenges in health financing. The Nigerian Senate has responded by allocating an additional 300 billion naira, or around $200 million, to the health sector in the 2025 budget. This decision was reported by local media on February 13, 2025.

Objectives of the supplementary allowance

The main aim of this allocation is to compensate for the financial shortfall caused by the suspension of American aid via the USAID agency. The funds will be used to reinforce efforts to combat diseases such as tuberculosis, HIV, malaria and polio. According to Adeola Olamilekan, Chairman of the Joint Appropriation Committee, the suspension of US aid will have a detrimental effect on Nigerians affected by these diseases.

Impact of the suspension of US aid

The Trump administration’s temporary 90-day suspension of US aid affects several African countries, including Nigeria. In 2024, Nigeria was among USAID’s top 10 recipients, receiving over $738 million for initiatives in health, education and agriculture. This dependence on international aid makes the current situation particularly critical.

Structural challenges facing the Nigerian healthcare system

Nigeria, Africa’s most populous country, faces persistent challenges such as deteriorating health infrastructure, emigration of health professionals and unequal access to care between urban and rural areas. Despite these obstacles, the health budget has seen a significant increase, rising from 711 billion naira ($471 million) in 2022 to 1330 billion naira in 2024, according to the National Budget Management Office.

Future commitments to strengthen the healthcare system

In December 2023, Nigerian President Bola Tinubu announced an allocation of $2.5 billion to strengthen the primary healthcare system between 2024 and 2026. This initiative aims to sustainably improve access to healthcare and meet the growing health needs of the population.

Conclusion

The increase in the health budget for 2025 marks a crucial step in Nigeria’s strategy to mitigate the impact of the suspension of US aid. This decision reflects the government’s commitment to ensuring access to healthcare for all, while seeking to strengthen the resilience of the healthcare system in the face of current and future challenges.