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Nigeria’s Health Sector Relies On External Funding For 16% Of Budgets, Report Reveals

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A recent report from the Nigeria Governors’ Forum highlights that 36 Nigerian states depend on external funding sources for 16% of their health sector budgets.

The funding, which includes aid, grants and loans, is crucial for many state governments to finance their health programs.

The report, obtained on Monday, reveals that grant and international aid programs are the primary sources of non-discretionary capital funding for most states.

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However, less than a quarter of them are exploring loans to finance capital projects due to challenges in securing loans and a general lack of interest in pursuing such options.

In terms of overall health expenditure, the 36 states spent a combined total of N505 billion in 2022, accounting for 7% of their total budgets, a slight increase from the N484 billion spent in 2021.

For 2023, the states have budgeted N923.31 billion for the health sector, reflecting an 83% increase from 2022. Despite this ambitious budget, the report notes that the average budget performance across states is around 63%, indicating that actual spending may fall significantly short of the N923.31 billion target.

The report also reveals disparities in health spending across states, with the average annual health expenditure standing at N14 billion.

Only 15 states have a medium-term health sector strategy (MTSS) for at least the 2024 budget year, with others relying on alternative planning documents developed by state health ministries.

In terms of healthcare priorities, the report indicates that 61.83% of the health budgets from 2021 to 2023 were allocated to public health services and health administration.

The remaining 38.17% went towards hospital services, outpatient services, medical products, and health research.

A key challenge highlighted in the report is the inability of states to present detailed health expenditure by specific services and disease categories.

This issue stems from the National Chart of Accounts (NCOA), which follows a global standard classification system that does not account for these specific classifications.

Full implementation of the NCOA’s program segment in the future could address this gap, according to the report.

 

 

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Lokpobiri Inspects NCDMB Host Community Projects in Bayelsa

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NCDMB Emerges Best MDA In Ease Of Doing Business Ranking

The Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri, has visited some projects being executed by the Nigerian Content Development and Monitoring Board (NCDMB) across Bayelsa West District, reaffirming the Board’s commitment to the development and well-being of host communities.

The Minister, who is also the Chairman of the NCDMB Governing Council, was in Bayelsa on a personal engagement and took the opportunity to visit some of the NCDMB’s projects in Ekeremor Local Government Area, including the 1.24km Link Road 2 in Ekeremor Town, the 1.250km Link Road in Ekeremor Town, and a 378kWp Mini Solar Grid, among others.

The projects are part of the NCDMB’s corporate social responsibility initiatives aimed at providing critical infrastructure and making life more meaningful for people in its host communities.

’The NCDMB has continued to demonstrate its commitment to its established responsibilities, including its corporate social responsibility to host communities. These projects are targeted at improving the quality of life of our people and supporting sustainable development.”

READ ALSO: Citizens Agitation Threaten Resumption of Oil Exploration in Ogoniland

Lokpobiri expressed optimism that the projects would be completed and put to use in due course.

“I believe that, in due time, these projects shall be completed to offer the intended services to the public and deliver lasting benefits to the benefiting communities,” he stated.

The Minister commended the NCDMB for its interventions in the district and expressed confidence that the completed projects would contribute meaningfully to the socio-economic development of Bayelsa West.

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Citizens Agitation Threaten Resumption of Oil Exploration in Ogoniland

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Citizens’ concerns over completion of ongoing negotiations before restarting oil production might be a clog in the wheel of the Federal Government’s plan for resuming oil activities in Ogoniland after 32 years.

This came to the fore because Ogoni people, under the platform of KAGOTE, representing Khana, Gokana, Tai and Eleme Local Government Areas, alleged that some oil-related activities may have commenced in parts of Ogoniland while the peace process with the Federal Government is still ongoing.

Speaking at a press conference in Port Harcourt on Tuesday, KAGOTE President, Chief Lesi Maol, said the development could undermine confidence in the dialogue process and create fresh distrust among the people.

Maol, however, commended President Bola Ahmed Tinubu for his commitment to addressing the longstanding concerns of the Ogoni people.

READ ALSO: Osifo Calls for Stronger Regulatory Stability for Oil, Gas Sector

He said KAGOTE recognised the Federal Government’s decision to establish the Ogoni Dialogue Committee (ODC) and appoint National Security Adviser, Mallam Nuhu Ribadu, as its chief negotiator as evidence of its commitment to finding a lasting solution to the Ogoni crisis.

The ODC was inaugurated by the Federal Government in January 2025 to engage Ogoni stakeholders on the conditions for the resumption of oil production, rebuild trust and strengthen relations between the communities and the government.

“We particularly recognise the integrity and distinguished public service record of the National Security Adviser and believe that the dialogue process, as conceived by the Federal Government, represents a genuine opportunity to achieve lasting peace and a mutually beneficial outcome for both the Ogoni people and the Federal Government,” Maol said.

He, however, expressed concern over what he described as the conduct of some members of the dialogue committee, saying their actions required urgent clarification to protect the credibility of the process.

“There is a growing apprehension among sections of the Ogoni population that certain oil-related activities may have commenced in parts of Ogoniland while consultations between the Federal Government and Ogoni stakeholders remain ongoing,” he said.

According to him, the absence of clear information from the ODC leadership has created uncertainty in the communities.

Maol said he had received several representations from concerned Ogoni communities but had been unable to provide definitive answers because of the lack of authoritative information.

KAGOTE therefore urged the ODC and Federal Government to clearly communicate the status of oil activities in Ogoniland to prevent misinformation, speculation and unnecessary tension.

He stressed that transparency would be critical to sustaining the fragile trust required to achieve a peaceful and mutually acceptable resumption of oil production in the oil-rich region.

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Osifo Calls for Stronger Regulatory Stability for Oil, Gas Sector

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Regulatory uncertainty and overlapping mandates among government agencies have been identified as possible investments in Nigeria’s oil and gas industry.

The president of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Festus Osifo, expressed the view at the 5th PENGASSAN Energy and Labour Summit (PELS) 2026 in Abuja on Wednesday.

The labour leader called for a more predictable, transparent and efficient regulatory framework to attract investment and sustain growth in the sector.

He said the theme of the summit, “Strengthening Regulatory Frameworks as a Catalyst for Stability and Growth in Nigeria’s Oil and Gas Industry,” was deliberately chosen because investors require clear rules and predictability before committing capital to long-term projects.

He identified the Petroleum Industry Act (PIA) 2021 as a major milestone in the effort to reform the industry, but noted that subsequent alterations to the framework have created uncertainty among investors.

He expressed concern over the removal of some fiscal provisions from the PIA and their movement to the Nigeria Revenue Act, as well as the use of executive orders to amend provisions of the law.

He also raised concerns about overlapping responsibilities among the various institutions regulating the oil and gas industry, saying operators should not be subjected to repetitive approvals, multiple inspections or conflicting directives.

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He said while regulation was necessary to protect workers, communities, investors and government revenues, it should not become an obstacle to investment.

Osifo urged regulators to streamline approval processes to enable operators to make timely investment decisions, noting that delays could affect new development plans, final investment decisions and production growth.

The PENGASSAN president also called for stronger protection of workers during acquisitions and divestments in the oil and gas sector. He said changes in ownership of oil and gas assets should not lead to workers losing their jobs, pensions, collective bargaining agreements and other established rights.

He equally warned against abuse of expatriate quotas, saying foreign workers should only be engaged where genuine skills gaps exist.

According to him, every expatriate engagement should be tied to measurable knowledge transfer and succession plans that would ultimately increase Nigerian capacity.

“These do not instill confidence or promote stability. Instead, they amplify uncertainty and disruption.

“What we require is not weak regulations. What we need is smarter regulations; regulations that understand commercial realities, embrace technology and eliminate unnecessary duplication.

“Capital is mobile and investors will naturally gravitate towards jurisdictions where there is clarity and efficiency.

“Licences and assets may change hands, but workers are not commodities to be discarded at will,” Osifo said.

Osifo further called for stronger enforcement of health, safety, environmental and local content regulations, stressing that increased oil production must not come at the expense of workers’ lives.

He also urged the government and industry stakeholders to accelerate investment in domestic refining, gas processing and LPG, CNG and LNG infrastructure, noting that Nigeria’s abundant gas resources could support power generation, petrochemicals, fertiliser production, transportation and industrialisation.

Osifo said Nigeria must go beyond recovering lost production and focus on unlocking new reserves, attracting fresh capital and sustainably increasing crude oil and gas output.

He called for stronger collaboration among government, regulators, operators and labour, saying sustainable investment and job creation could only be achieved through predictable policies, accountability and mutual respect.

“Without investment, there will be no project. Without projects, there will be no sustainable jobs. Without production, there will be no revenue. And without fairness and stability, none of these can endure,” he added.

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