Why Nigeria Needs Dedicated Healthcare Funding to Sustain Industrial Growth – Prof. Baale
Nigeria must establish dedicated, long-term healthcare funding structures to sustain recent growth in its healthcare and pharmaceutical manufacturing sector, according to Prof. Lere Baale.
Baale made the call while delivering a keynote address at a Codix Group dinner in Lagos, where stakeholders discussed the sustainability of Nigeria’s emerging healthcare industrial base.
He said Nigeria is witnessing a shift towards local healthcare manufacturing, driven by lessons from global supply chain disruptions, the COVID-19 pandemic, foreign exchange pressures and regulatory reforms. According to him, indigenous pharmaceutical manufacturers have expanded production, diagnostic companies are investing locally, and regulatory confidence has improved, alongside increased professional capacity and partnerships.
Baale described the development as significant but fragile, warning that the absence of structured, sector-specific financing could undermine recent gains.
He noted that healthcare manufacturing requires large capital investment, long development timelines and strict regulatory compliance, yet is often financed with short-term funding models that are unsuitable for the sector.
Baale argued that medicines, diagnostics and medical consumables should be treated as strategic national assets, stressing that inadequate financing could affect supply stability, quality standards and long-term growth.
He proposed reforms to institutionalise sustainable healthcare financing, including an increase in the Basic Healthcare Provision Fund from one per cent to three per cent of consolidated government revenue. He suggested that the fund be managed through the Bank of Industry in collaboration with the Federal Ministry of Health, with structured disbursement mechanisms at state and local government levels.
Baale also called for stricter payment discipline across the healthcare value chain, recommending a maximum 30-day payment cycle to support manufacturers’ cash flow. Other proposals included the creation of a revolving healthcare fund and guaranteed offtake arrangements to provide market certainty for local producers.
He said such measures would help stabilise supply, encourage investment, reduce financial risk and improve access to healthcare products, while positioning healthcare manufacturing as a strategic component of national economic development.
Baale urged policymakers, financial institutions and regulators to adopt a long-term approach to healthcare financing, treating the sector as critical infrastructure rather than routine expenditure.
