Funding health care projects in an Economic recession is an activity that cannot be ignored. This is so because health care is a major service that affects the entire wellbeing of the citizens irrespective of their, age, gender, social class and economic status. It measures human development index and determines the level of productivity in a nation. No matter how gloomy the economy portends, efforts must be consciously put together to source for funds to cater for services such as health care. The question of how to raise money from a dwindling economy to fund this sector becomes a necessary subject of discussion. Understandably Nigeria is in its very bad shape economically, with the GDP dropping in two consecutive quarters from $568bn in 2015 to $481bn in 2016. The negative effect of Nigeria’s current economy has affected the public funding of so many projects and services budgeted for in the 2016 budget. The federal government budgeted the total sum of N6trn in the 2016 budget out of which N250bn was allocated to the federal ministry of health. This represented a total allocation of 4% of the total budget; the capital budget allocation to the health care was N28bn out of a total capital budget of 1.6trn. Assuming the figures allocated to the health sector is to be fully utilized, it is still very minimal compared to the funding requirement needed in the sector. For the component of maternal new born child health alone, a USAID deliver project estimated a funding requirement of N350bn annually to provide services for maternal newborn child health. Also, if the federal government had adhere to the agreement it reached with African leaders in Abuja to set aside 15% of total national budget for health, the 2016 budgetary allocation to health should be N659bn.
Despite the funding gap to the health sector there is uncertainty that the allocation for the sector will be fully utilized in the 2016 budget due to the economic recession experienced in Nigeria.
The federal government has declared that not all projects budgeted for in the 2016 budget will be funded and that projects will be funded on priority basis. So far, in the fourth quarter of 2016 just N350bn of the capital budget has been released to all sectors from a total capital budget of 1.6trn. This indicates that the disbursement to the health budget will experience a deep slice from its budgetary allocation. This danger of this is that, the health indicators of Nigerians will be greatly affected. This danger will be largely felt by the vulnerable such as mothers and children. This group of people benefits from subsidized health services in the provisions of vaccines and immunization for neo- natals. Free drugs and basic health care provisions in the Primary Health Care Services is largely accessed by majority of Nigerians who utilize government hospitals. They are bound to be largely affected if the health budget is not properly funded and implemented.
To avoid the jeopardy of high mortality and morbidity rate in Nigeria, there is an urgent need to explore alternative sources of funding health in this period of economic recession. Some of the several ways suggested in this article includes; the utilization of community based health insurance. The CBHI requires contribution of token by members of a community within an average amount of not more than double digit of the naira value i.e. such as between N100 to 500 monthly or as the case may be quarterly or annually. This amount is to be contributed by every adult in the community and to be accessed whenever they fall sick. With the help of the NHIS, the funds can be managed by the local primary health care centers.
Credit: leadership