By Angela Onwuzoo
In line with the Presidential directive making health insurance mandatory nationwide, the National Health Insurance Authority and the Bank of Industry signed a Memorandum of Understanding on Tuesday to expand health insurance coverage and reduce catastrophic out-of-pocket expenditures among Nigerians.
The MoU aims to expand health insurance coverage among Nigerian businesses, particularly Micro, Small, and Medium Enterprises, cooperatives, and individual entrepreneurs.
Speaking at the signing ceremony held at the BOI office in Lagos, the Director-General of NHIA, Dr Kelechi Ohiri, said the agreement aims to establish a framework for expanding access to health insurance by facilitating the enrolment of BOI-funded beneficiaries and their employees into NHIA health insurance schemes. It will also integrate health insurance compliance into BOI’s loan application and disbursement processes.
According to him, the collaboration represents a transformative opportunity to align Nigeria’s development financing with national health priorities by making health insurance enrolment a precondition for accessing BOI facilities. This, he said, would promote improved health outcomes, reduce mortality rates and accelerate the achievement of Universal Health Coverage in Nigeria.
Ohiri stated that mandatory social health insurance is a crucial step to achieving UHC by ensuring that every citizen has access to essential healthcare services without suffering financial hardship.
“It is important that we take this step. It is a national mandate. In May 2022, the National Health Insurance Act was passed by the National Assembly, and for the first time in Nigeria, health insurance became mandatory for all residents, citizens and legal residents.
“It took some time for this to take effect, which was why President Bola Tinubu, in September this year, issued an executive order, circularised by the Secretary to the Government of the Federation, to give force to the law and ensure that everyone is insured,” he said.
PUNCH Healthwise reports that President Tinubu had in September directed the compulsory implementation of health insurance across all Ministries, Departments and Agencies, in line with the National Health Insurance Authority Act, 2022.
The directive covers five key areas, including the compulsory enrolment of all MDA employees under the NHIA health insurance plan.
According to a statement by the President’s Special Adviser on Information and Strategy, Mr Bayo Onanuga, the President instructed the Secretary to the Government of the Federation to issue a service-wide circular mandating compliance.
“The presidential directive aims to expand health coverage, safeguard workers, reduce out-of-pocket health expenditures and promote accountability in public and private sector engagements,” the statement added.
Ohiri noted that since insurance is built on trust, it is crucial that workers who contribute to the growth of the nation’s economy also enjoy basic social protection against the catastrophic cost of illness.
“Today’s event represents not just the formal execution of a document, but a shared commitment by NHIA, BOI and Nigerians to advance sustainable healthcare financing, strengthen our health system, and improve the well-being and productivity of our people.
“I am extremely proud of BOI for being a pioneer organisation and for paving the way for others to follow. Universal health coverage is one of the priorities of the President’s administration, which informed the signing into law of the Nigeria Health Sector Renewal Investment Initiative led by the Coordinating Minister of Health and Social Welfare, Prof. Muhammad Ali Pate,” he said.
Ohiri disclosed that NHIA operates on four pillars: expansion of access through enforcement of the mandate; equity to ensure no one is left behind; improvement in quality of care; and access to affordable healthcare for all Nigerians.
A collaboration brief obtained by PUNCH Healthwise indicated that the legal basis for the partnership is anchored on Section 3(b) of the NHIA Act, 2022, which mandates the Authority to ensure that health insurance is compulsory for every Nigerian and legal resident, as well as Section 14(1) of the Act, which requires every person resident in Nigeria to obtain health insurance.
In recognition of NHIA’s mandate and BOI’s role in Nigeria’s industrial sector, the partnership aims to reach MSMEs, cooperatives and individual entrepreneurs seeking BOI loans but who are not yet enrolled in any health insurance scheme.
“The policy synergy between the NHIA Act, which makes health insurance mandatory, and BOI’s enterprise development financing role makes this collaboration an ideal channel for promoting health insurance compliance, in line with the Presidential directive,” the brief stated.
In his remarks, the Managing Director and Chief Executive Officer of BOI, Dr Olasupo Olusi, described the partnership as a strategic response to Nigeria’s evolving healthcare, productivity and inclusion priorities.
“BOI is proud to be an early adopter of the presidential health insurance compliance directive and to collaborate with NHIA in advancing this national priority.
“We recognise that strong human capital is fundamental to productivity, resilience and long-term economic growth. By integrating health insurance compliance into our loan engagement processes, we are translating national policy into practical action across the private sector.
“In doing so, we are encouraging broader adoption, improving enterprise resilience and supporting sustainable growth across industries,” Olusi said.
He added that access to healthcare improves workforce stability, boosts productivity and reduces out-of-pocket medical expenses for businesses and their employees.
The NHIA Act, 2022, stipulates compulsory health insurance for Nigerians and mandates the Authority to ensure health coverage for all persons in the country.
The development is expected to expand health insurance coverage, improve access to affordable and quality healthcare, and significantly reduce out-of-pocket health expenditure nationwide.
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