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Post: Nigeria Urged to Lead in Health Financing with Innovative Tax Approaches


Abuja:Dr. Kumanan Rasanathan, Executive Director of the Alliance for Health Policy and Systems Research at the World Health Organisation (WHO), has emphasized the potential for Nigeria to become a global health superpower by innovating domestic health financing strategies.



According to the News Agency of Nigeria, Rasanathan highlighted the role of health taxes in generating additional resources for healthcare, which could also reduce harmful consumption. He noted the decline in external financing for health, urging Nigeria to explore domestic funding alternatives through health taxes on tobacco, alcohol, and sugar-sweetened beverages.



Rasanathan pointed out that while Nigeria already implements health taxes, there is room for improvement in tax rates, collection mechanisms, and revenue utilization. He described the formation of a health-tax task team, involving government, civil society, and development partners, as a crucial step toward reform.



Effective communication and transparency in the use of health-tax revenue were emphasized as vital for gaining public support. Rasanathan suggested that earmarking some health-tax revenue for healthcare could demonstrate tangible benefits to citizens. He cited examples from countries like Mexico, Thailand, and the Philippines, where health-tax policies have successfully reduced harmful consumption and improved healthcare coverage.



He encouraged Nigeria to seize the opportunity to develop a robust health-tax system that addresses its healthcare needs and serves as a model for other nations. The WHO’s Alliance for Health Policy and Systems Research is prepared to support Nigeria in this endeavor, aiming for improved health outcomes and global learning from Nigeria’s experience.