Nigeria Launches National Health Insurance System

Nigeria has officially launched the long-awaited National Health Insurance Scheme (NHIS). The new socialised healthcare system will oblige both public and private employers to contribute 15% of worker salaries to a preferred Health Maintenance Organisation (HMO), which will then in theory arrange the necessary care. The government has committed NGN26bn (US$196.82mn) to the scheme.

Nevertheless, despite the encouraging move toward modernisation of the healthcare sector, there are early signs of problems. The scheme's former chief is currently awaiting a government corruption hearing, and there are fears that payment of the scheme's contributions will be widely evaded.

Some of these concerns have been partly allayed by the government's decision to provide the new healthcare structure directly from the national budget for its first 18 months, effectively guaranteeing free healthcare prior to NHIS' introduction as an employee-funded framework. Upon its full implementation, provision is likely to be divided into separate schemes for groups as diverse as the urban self-employed, the armed forces and those in rural areas.

Although it is hoped that this will limit opportunities for corruption, it is likely that some confusion and overlap will occur. Meanwhile, little practical action has been taken regarding the fact that much of Nigeria's drug distribution sector is operated by illegal cartels, and poor-quality copy drugs continue to account for the majority of the US$255mn market.