For the first time in over a decade, the National Health Insurance Authority (NHIA) has significantly increased two key payment mechanisms for healthcare providers, capitation and fee-for-service payments.
This adjustment follows an earlier increase made six months ago, which saw a 60 percent increase in capitation fees and a 40 percent increase in fee-for-service payments.
These changes were initially introduced as a temporary measure to stabilize the industry and manage rising costs, while awaiting a full actuarial review to establish sustainable rates.
The new rates, approved by the Minister for Health and Social Welfare, Prof. Muhammad Ali Pate, will be implemented in April 2025, based on the findings of the completed actuarial review.
During a stakeholders meeting in Abuja on February 3, 2025, the Director General of the NHIA, Dr. Kelechi Ohiri, announced this development.
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The revised tariffs aim to ensure fair compensation for healthcare providers, encouraging them to deliver high-quality services, while also mitigating rising medical costs.
Overall, these adjustments are designed to provide better financial support for healthcare providers, leading to improved patient care and enhanced industry standards.
Stakeholders at the meeting, including heads and representatives from health maintenance organizations, healthcare provider associations, and the committee of chief medical directors of federal tertiary hospitals, commended the NHIA for this bold step towards stabilizing Nigeria’s efforts toward universal health coverage and for the significant reforms being implemented.
