Health taxes can revamp Nigeria’s health sector – HFN President

The President of the Healthcare Federation of Nigeria (HFN), Pamela Ajayi has beamed light on the issue of underfunding in the health sector, advocating for increased funding and restating HFNs’ commitment to health and healthcare delivery in Nigeria.

The President, who stated this at HFN 2nd Annual General Meeting, also spoke on the recently proposed pro-health taxes by the Minister of Finance. Commending it as a welcome development, Dr Ajayi said:

“Tobacco, alcohol, and sugary beverage consumption accounts for a large and growing share of the burden of premature death and disease in Nigeria.

“The prevalence of smoking in the country is rising at about 4% per year and the World Health Organization (WHO) estimated about 13 million smokers in Nigeria in 2012, with over 16,000 deaths attributable to smoking. Beyond the large health care costs it imposes, it also reduces economic productivity.

“The burden of alcohol, tobacco, and sugar-sweetened beverages is being carried by the health sector as diseases such as diabetes, cancer, liver damage, tuberculosis caused by these products are on the increase and if not checked or health system supported, Nigeria may end up in a health crisis.”

Ajayi on behalf of the HFN, appreciated the leadership of the Hon. Minister of Finance, Dr Zainab Ahmed, for her bold steps in implementing the Strategic Revenue Growth Initiatives (SRGI), an initiative highlighted in her 2022 appropriation plan. The SRGI will introduce Pro-Health Taxes by increasing existing taxes on alcohol and tobacco and introducing new taxes on Sugar-Sweetened Beverages (SSB).

According to the President, the HFN leadership had in a formal letter to the Minister made several requests concerning the implementation.

“HFN requests that the taxes be ring-fenced primarily as a health measure and the taxes be used to subsidize coverage to the indigent populations; to scale up mandatory health insurance coverage to all Nigerians; and by allocating a significant percentage of the revenue to augment existing impactful initiatives such as the Basic Healthcare Provision Fund, Cancer Health Fund, and the National Health Insurance Scheme.

The organisation also suggested that a percentage be earmarked for equipment purchase, Research, and Development in the key areas of diabetes, cardiovascular disease, and cancer. Supporting these recommendations, Njide Ndili, Vice President HFN, agreed that it is important to note that the healthcare sector can significantly improve its efficiency and reach with dedicated funding and investments both from the government with the support of the private sector who currently provides over 60% of the healthcare delivery in Nigeria.

She also said the pro-health taxes will go a long way in strengthening the sector if the funds are adequately administered.

The Healthcare Federation of Nigeria is a coalition of Nigerian private healthcare sector stakeholders, an apolitical, Non-Partisan, Non-profit organization speaking with a unified voice to improve the Nigerian Health Sector through advocacy. The Federation advocates for changes in policies, policy reforms, and implementation that will support the growth and development of the Nigerian Health sector. The 2nd Annual General Meeting of HFN held on Thursday, December 2, 2021.

Anthony Nlebem

Business Day

Health taxes can revamp Nigeria’s health sector – HFN President