Osinbajo seeks innovative financing for Africa’s healthcare systems

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Former Vice President, Prof Yemi Osinbajo, and healthcare stakeholders have called for the adoption of innovative financing mechanisms to address funding challenges confronting healthcare systems in Africa.

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They made the call at a high-level roundtable on Innovative Financing Models for Africa’s Healthcare Systems, organised by Future Perspectives, a platform founded by Osinbajo, in partnership with the Gates Foundation, in Lagos.

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The roundtable held earlier this month brought together government officials, development finance institutions, investors, financial sector leaders and healthcare executives to examine ways of mobilising sustainable capital for healthcare delivery amid persistent funding gaps.

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Speaking at the event, Osinbajo said government funding alone could not meet the growing demands of healthcare systems, stressing the need for alternative financing models that would expand access and reduce dependence on direct payments by patients.

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“Government spending alone can never address the scale of the challenge,” Osinbajo said.

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He noted that many Nigerians still relied heavily on out-of-pocket healthcare payments, adding that the objective of the dialogue was to identify “practical ways to finance healthcare through innovative and sustainable mechanisms.”

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The former Vice President said stronger collaboration between government, private investors, financial institutions and development partners was necessary to build resilient healthcare systems capable of serving Africa’s growing population.

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The session was moderated by the Executive Director for Africa at ONE, Serah Makka, who is also a member of the Future Perspectives Board.

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The meeting was attended by representatives from healthcare organisations, financial institutions, investment firms and development agencies, including the Nigeria Exchange Group, Clinton Health Access Initiative, Private Sector Health Alliance of Nigeria, World Bank, International Finance Corporation and other sector stakeholders.

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Representing the Minister of Health and Social Welfare, Prof Pate, the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain, Dr Abdu Mukhtar, said limited insurance coverage remained one of the major barriers to healthcare access in Nigeria.

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Mukhtar said only about 10 to 12 per cent of Nigerians currently had health insurance coverage, adding that expanding access would require significant investment and stronger partnerships.

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He said ongoing collaborations with institutions, including Afreximbank and the European Investment Bank, were aimed at unlocking large-scale financing opportunities for the healthcare sector.

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He, however, noted that smaller healthcare providers continued to face difficulties accessing growth capital.

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“There is a missing middle. Many businesses need just $2m to $5m to grow, but struggle to access capital,” he said.

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The Managing Director and Chief Executive Officer of MedServe, Dr Tolulope Adewole, who represented the Managing Director of the Nigeria Sovereign Investment Authority, Aminu Umar-Sadiq, said affordability remained a major challenge affecting healthcare demand.

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According to him, sustainable healthcare financing requires collaboration among stakeholders.

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“The bigger problem sits on the demand side,” Adewole said, noting that many Nigerians lacked the financial capacity to access available healthcare services.

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“Collaboration is what will take us out of this challenge,” he added.

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The Managing Director and Chief Executive Officer of AfyA Care, Dapo Akisanya, said healthcare could become a profitable and scalable sector if supported with disciplined financing structures and coordinated investments.

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Akisanya advocated increased impact investing and blended financing models to support businesses operating across the healthcare value chain.

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The Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun, said private capital would be critical in closing the healthcare financing gap, arguing that government resources alone were insufficient.

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“Government funding is wholly inadequate, and private capital is essential,” Balogun said.

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He added that healthcare investments required patient, long-term financing, which could be provided through capital markets.

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A Senior Investment Officer at the International Finance Corporation, Chishamiso Mawoyo, stressed the importance of financing healthcare providers in local currencies, noting that providers served communities whose economic realities differed from international markets.

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“Healthcare providers serve local populations, so financing must reflect that reality,” Mawoyo said.

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The Deputy Director at the Gates Foundation, Ekenem Isichei, said financing models must focus on measurable outcomes, ensuring that resources are translated into improved health outcomes and better livelihoods.

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“Financing must translate to real impact,” Isichei said, adding that philanthropy should help unlock wider sources of capital through blended financing approaches.

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A Senior Health Financing Specialist at the World Bank, Dr Olumide Okunola, emphasised the importance of strengthening public financing systems, warning that private investments alone could not replace government responsibility.

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“Without strong public financing, everything else is limited,” Okunola said.

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In his closing remarks, the Co-Founder of Future Perspectives, Yemi Asekun, said the next step was to transform discussions from the roundtable into practical financing solutions that could support healthcare development.

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“Capital always follows capacity and management,” Asekun said, adding that stakeholders would continue exploring structures that could support a national healthcare investment platform.

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