By DAYO ADESULU
Nigeria’s Federal Ministry of Health and Social Welfare has raised fresh concerns over the country’s healthcare financing after revealing that it was unable to utilise its 2025 capital budget due to severe cash shortfalls.
The Minister of Health, Professor Mohammed Ali Pate, disclosed on Monday that the ministry received only ₦36 million out of the ₦218 billion capital allocation approved for the 2025 fiscal year, effectively grounding critical health projects nationwide.
The revelation has sparked renewed debate about budget implementation, fiscal discipline, and the widening gap between policy promises and on-the-ground realities in Nigeria’s health sector.
Health Ministry Receives Less Than 0.02% of Approved Capital Funds
Speaking during an official engagement, Prof. Pate described the funding situation as deeply troubling, noting that the amount released represents less than 0.02 per cent of the ministry’s approved capital budget.
According to him, the drastic shortfall made it impossible for the ministry to commence, continue, or complete capital-intensive projects earmarked for 2025, including hospital upgrades, construction of new health facilities, procurement of modern medical equipment, and expansion of public health infrastructure.
“This level of release makes capital implementation practically impossible,” the minister stated, stressing that planning without corresponding funding undermines the entire health system.
Impact on Hospitals, Infrastructure, and Healthcare Delivery
The 2025 capital budget for the health ministry was designed to address longstanding gaps in Nigeria’s healthcare system, particularly in underserved rural and semi-urban areas. Key priorities reportedly included:
- Rehabilitation and expansion of federal teaching hospitals
- Strengthening primary healthcare centres
- Improving diagnostic and laboratory capacity
- Supporting disease surveillance and emergency preparedness
- Upgrading medical training institutions
However, with only ₦36 million released, most of these projects remained on paper.
Health experts warn that delayed or abandoned capital projects worsen overcrowding in tertiary hospitals, reduce service quality, and further stretch already overburdened health workers.
Budget Releases and the Implementation Gap
Prof. Pate’s disclosure highlights a recurring issue in Nigeria’s public finance system: the disconnect between budget appropriation and actual cash backing.
While the National Assembly routinely approves large allocations for the health sector, actual releases often fall far below expectations. Analysts say this implementation gap erodes public confidence and limits the impact of reform-oriented policies.
“The problem is not always budget size, but budget execution,” a public finance analyst noted. “When releases don’t match approvals, ministries cannot plan effectively or deliver results.”
Broader Implications for Nigeria’s Health Reform Agenda
The funding shortfall comes at a sensitive time, as the federal government has repeatedly pledged to strengthen healthcare delivery, reduce medical tourism, and improve health outcomes under ongoing reform programmes.
Nigeria continues to grapple with:
- High out-of-pocket healthcare spending
- Shortages of medical personnel
- Brain drain in the health sector
- Inadequate infrastructure and equipment
- Persistent public health threats
Observers argue that without reliable capital funding, these challenges will persist, regardless of policy intentions.
Calls for Stronger Fiscal Coordination
In his remarks, the health minister underscored the need for better coordination between budget approvals, revenue projections, and fund releases. He also hinted at the importance of prioritising health spending given its direct link to national productivity and human capital development.
Stakeholders are now calling on fiscal authorities to ensure that future budgets are not only ambitious on paper but also backed by realistic and timely releases.
Civil society groups have similarly urged greater transparency around budget performance, insisting that Nigerians deserve to know why critical sectors like health receive minimal funding despite large appropriations.
Public Reaction and Concerns
The disclosure has generated strong reactions from healthcare professionals, policy advocates, and the public. Many see it as a reflection of deeper structural issues in governance and resource allocation.
For frontline health workers and patients, the consequences are immediate: delayed projects, limited access to care, and continued strain on existing facilities.
As Nigeria moves deeper into the fiscal year, attention will remain on whether supplementary releases or adjustments can salvage parts of the 2025 health capital programme.
For now, the revelation that ₦36 million out of ₦218 billion was released stands as a stark reminder of the funding realities facing Nigeria’s health sector.#NigeriaHealthSector #HealthBudgetCrisis #MohammedAliPate #CapitalBudget #HealthcareFunding #PublicFinance #TCNews
