Nigeria Needs Risk-Sharing Fund for Primary Healthcare Investment

The House of Representatives has called for the establishment of a risk-sharing fund to encourage greater private-sector investment in Nigeria’s primary healthcare system.

The call was made during a legislative engagement on healthcare financing and investment, where lawmakers highlighted the need for innovative funding mechanisms to address persistent challenges affecting primary healthcare delivery across the country.

The lawmakers said Nigeria’s primary healthcare centres require substantial investment in infrastructure, equipment, personnel and essential services to effectively serve communities, particularly in rural and underserved areas.

According to the representatives, government resources alone may not be sufficient to meet the country’s growing healthcare investment requirements, making private-sector participation increasingly important.

They proposed a risk-sharing mechanism that would reduce some of the financial risks associated with investing in primary healthcare facilities and services.

The lawmakers explained that such a fund could provide guarantees or other forms of support that would make healthcare investments more attractive to private investors and financial institutions.

They noted that investors often face challenges associated with long payback periods, limited purchasing power in rural communities and uncertainties surrounding healthcare revenue streams.

A risk-sharing fund, they argued, could help bridge the gap by absorbing part of the risks while allowing private investors to participate in expanding healthcare infrastructure and services.

The initiative is also expected to support the Federal Government’s efforts to improve access to quality healthcare and reduce pressure on secondary and tertiary health facilities.

Primary healthcare remains the first point of contact for many Nigerians seeking medical attention, but several facilities across the country continue to face challenges including inadequate infrastructure, shortages of medical personnel, unreliable power supply and insufficient equipment.

The lawmakers said addressing these challenges would require stronger collaboration between federal and state governments, development partners, private investors and communities.

They also stressed the importance of ensuring that any financing mechanism is transparent, properly regulated and designed to deliver measurable improvements in healthcare outcomes.

The proposed fund could support projects involving the construction, rehabilitation and equipping of primary healthcare centres, as well as investments in technology, diagnostics, renewable energy and other essential services.

Lawmakers further emphasised the need for policies that would create a predictable investment environment and give private-sector participants greater confidence in long-term healthcare projects.

They said improved financing for primary healthcare would contribute to early disease detection, preventive care and reduced healthcare costs for vulnerable populations.

The House is expected to continue discussions with relevant government agencies and stakeholders on mechanisms for mobilising additional resources for the sector.

The proposal forms part of broader efforts to explore alternative financing models that can complement government funding and improve the sustainability of Nigeria’s primary healthcare system.

The lawmakers maintained that attracting private capital, while protecting public interest, would be essential to expanding access to quality primary healthcare services nationwide.