"We need innovative mechanisms to finance healthcare systems”

Former Nigerian Vice President, Yemi Osinbajo, has emphasised the urgency of rethinking healthcare funding, noting that “government spending alone can never address the scale of the challenge.”

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Mr Osinbajo, a professor, added that “most Nigerians continue to rely on out-of-pocket payments.”

He stressed that the goal of the roundtable was to identify “practical ways to finance healthcare through innovative and sustainable mechanisms.”

Mr Osinbajo made the disclosure at a high-level roundtable on Innovative Financing Models for Africa’s Healthcare Systems in Lagos on 10 June, organised by Future Perspectives, founded by the former Vice President.

The hybrid roundtable brought together senior government officials, development finance institutions, financial institutions, investors, capital market leaders, and healthcare executives to address persistent financing gaps in Nigeria’s healthcare system.

Abdu Mukhtar, national coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), who represented the Minister of Health and Social Welfare, Ali Pate, while giving the keynote, highlighted the scale of the access gap, noting that “only 10 to 12 per cent of Nigerians have health insurance.”

Mr Muktar underlined ongoing efforts to mobilise large-scale financing, stating that partnerships with institutions such as Afreximbank and the European Investment Bank are helping to unlock billions in potential investments.

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He also pointed to a critical gap for smaller healthcare providers, noting that “there is a missing middle, many businesses need just $2–5 million to grow, but struggle to access capital.”

Tolulope Adewole, MD/CEO of MedServe, who represented Aminu Umar-Sadiq, MD/CEO of the Nigeria Sovereign Investment Authority (NSIA), noted that “the bigger problem sits on the demand side,” pointing out that affordability remains a key constraint in a country where a large proportion of the population lives on low incomes.

He stressed that “collaboration is what will take us out of this challenge,” adding that sustainable projects can attract long-term capital.

From an investor’s perspective, Dapo Akisanya, MD/CEO at AfyA Care, highlighted the importance of building viable healthcare businesses, stating that “healthcare can be structured as a profitable and scalable sector,” but that it requires disciplined financing and ecosystem coordination. He called for increased “impact investing and blended financing” to support growth across the value chain.

Bolaji Balogun, CEO of Chapel Hill Denham, emphasised the role of private capital, noting that “government funding is wholly inadequate, and private capital is essential.”

He added that healthcare requires “patient, long-term financing,” best supported by capital markets, which provide “the deepest pools of capital and transparency investors need.”

Chishamiso Mawoyo, senior investment officer at the International Finance Corporation (IFC), highlighted structural challenges across Africa’s healthcare landscape but noted that these gaps also present opportunities for investment and innovation. He emphasised the importance of local currency financing, stating that “healthcare providers serve local populations, so financing must reflect that reality.”

From a systems perspective, Ekenem Isichei, deputy director at the Gates Foundation, stressed that “financing must translate to real impact,” cautioning that resources must deliver on “lives saved and livelihoods improved.” He added that philanthropy should “catalyse systems that unlock capital more effectively,” especially through integrated, blended finance approaches.

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Olumide Okunola, senior health financing specialist at the World Bank, underscored the foundational role of public financing, stating that “without strong public financing, everything else is limited,” and emphasised the need to reduce reliance on out-of-pocket spending.

Jumoke Olaniyan, group chief strategy officer who represented Temi Popoola, group managing director/chief executive officer, at the Nigeria Exchange Group, said the link between healthcare and the capital market is clear, noting that “the instruments exist, the framework exists, the structure exists, the need exists.” She explained that the capital market already offers “bonds, and other kinds of debt securities,” as well as equity and structured products such as funds, all of which can be used by the health sector.