by Dr. Dami Adeyemi Levites
I think it is as simple as ABC, and not as complicated as it seems.
In 2001, African Leaders met in Abuja, Nigeria, to agree that at least 15% of yearly national budgets of all African nations should be expended on health.
Year 2021 budget for Nigeria failed again to meet the set target as it had for many years running. Only about 4.526% of the budget was earmarked for healthcare, and that in spite of the COVID-19 challenge.
The 2021 healthcare budget for Nigeria as a nation (about 592.17 Billion Naira) shows that 2,960 Naira was budgeted per head per annum for all citizens in Nigeria for the year, using an estimated population of 200 million.
If all Nigerians are given an equal chance to contribute that 2.9K naira per head in a health insurance pool properly managed by an independent and goal-oriented body, (a private health insurance company highly recommended here), and there is no fraud or misrepresentation at healthcare providers’ level, that fund is more than enough to cater for the basic healthcare needs of all Nigerians.
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There are 774 local governments in Nigeria. It costs about 80 million Naira to build and set up a basic/ simple Primary Healthcare Centre in Nigeria, including full running costs for at least one year. The costs this would cover include those for medical consumables, essential drugs, personnel costs, power/energy, and basic medical equipment.
To build 774 PHCs of such standard, and run it perfectly well for a whole year would therefore cost only 61.92 Billion Naira per annum. To be very aggressive, and put the aforementioned cost of set up at 100 million Naira per Primary Health Centre, that would be about 77.4 billion naira needed to establish a working Primary Health Centre in every Local Government Area in Nigeria.
After building at least one Primary Health Centre per local government area across all states in Nigeria, the fund left would still be well over 500 billion naira! From experience, I can safely estimate that primary care accounts for about 75% of all healthcare encounters, while secondary care accounts for the remaining 25%. And primary care drives about 55% of all healthcare expenses, while secondary care drives the remaining 45%.
Therefore, if the 55% of all expenses required for healthcare is for primary care, and it has been well catered for by the establishment and smooth running of all Primary Health Centres across the country, then we can safely say that we have the 45% balance of all care (secondary care) well covered by the over 500 billion naira left.
Don’t forget that once you build the Primary Health Centres, all that would be outstanding would just be recurrent expenditures to be handled on an annual basis per Primary Health Centre.