NHIA Raises Healthcare Reimbursements by 373%

ABUJA, Nigeria – The National Health Insurance Authority (NHIA) has increased reimbursements to healthcare providers under its fee-for-service arrangement by 373 per cent and doubled capitation payments, in a move aimed at improving service delivery and restoring public confidence in Nigeria’s health insurance system.

NHIA Director-General Dr Kelechi Ohiri announced the changes on Thursday during a joint quarterly media briefing organised by the authority and the National Primary Health Care Development Agency in Abuja.

Ohiri said the increases followed an actuarial review of healthcare tariffs that had remained unchanged for a decade despite rising costs of medicines and medical services.

The revised payments took effect on April 1, 2025, and were intended to ensure that healthcare providers received more appropriate reimbursement for services delivered to insured patients. “We launched an actuarial review of the existing tariffs. These had not been increased or revised in a decade, and we know that the cost of medicines has been increasing. “What we did was to review them using the same principles, which resulted in a doubling of what is paid for in capitation and a 373 per cent increase in what was reimbursed in terms of fee for service,” he said.

Ohiri said inadequate reimbursement had contributed to challenges in healthcare delivery, including complaints from insured patients who were denied covered services or asked to pay out of pocket for medicines and treatments included in their insurance packages.

He disclosed that the number of Nigerians covered by health insurance had risen by 42 per cent, from approximately 16 million in January 2024 to 23.02 million.

The NHIA Act, 2022, established a framework for mandatory health insurance for residents and strengthened efforts to expand access to healthcare financing.

However, the rising cost of medical services and Nigerians’ continued reliance on out-of-pocket payments remain major challenges. 

About the Author

Mirian Gom

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Gom Mirian is a Nigerian journalist and editor at Africa Health Report (AHR), with more than a decade of experience covering health, development, humanitarian issues and public-interest affairs across Nigeria and Africa. She holds a Master’s degree in Economics and has additional training in data analytics, combining evidence-driven reporting with compelling human-centred storytelling. Her work examines the intersection of health, policy, economics, technology and social change, with a particular interest in how global decisions and emerging challenges affect communities across Africa. Her journalism has received professional recognition, including a Nestlé Award nomination for human-interest reporting. Follow her on X @mirian_linus.

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