NHIS faces financing shortfalls, impacting health progress – World Bank

The National Health Insurance Scheme (NHIS) is grappling with financing shortfalls, affecting health progress and the protection of vulnerable groups, as revealed by the World Bank’s Public Finance Review.

The NHIS is no longer receiving its full National Health Insurance Levy (NHIL) allocation due to the capping law, and there is a gap between budgeted allocations and actual funds received.

High administrative costs are also limiting spending efficiency, with less than 60% of the budget going toward claims. Meanwhile, social assistance programs, such as LEAP, LIPW, and GSFP, have limited impact due to low benefit levels, representing only 0.2% of GDP in 2025, well below the average of similar countries.

The World Bank stresses the importance of external funding for these programs.