The Nigerian healthcare system is still grappling with perennial underfunding, with less than 15% of the total annual federal government budget consistently allocated to the health sector, as is the case in most low-and middle-income countries (LMICs). According to a recent report from real estate consultancy Knight Frank, Nigeria would require 386,000 additional beds and $82 billion of investment in healthcare real estate assets to reach the global average of 2.7 beds per thousand people.
There is a need for innovative financing solutions that hold the potential to revolutionize health financing if we are to achieve the United Nations universal health coverage mandate by 2030. These solutions must address one or more of the three key areas of health financing: mobilization of resources to finance healthcare services, pooling of funds and risks, and purchasing of health services. Examples of these digital technologies include mobile telephone applications, webpage interaction platforms, blockchain, big data analytics, and artificial intelligence, including machine learning.
Understanding the role of digital technologies and their undeniable impact on health financing is important for obvious reasons. These emerging digital technologies truly have the potential to revolutionize health financing through the achievement of widely agreed health-financing principles and desirable attributes – i.e., largely relying on public finance, reducing out-of-pocket expenditure, expanding prepaid and pooled funding, and making purchasing more strategic. The impact is that access to quality healthcare will be democratized, with even those in underserved areas able to access medical equipment and other health infrastructure needed to deliver quality healthcare.
A key premise of this paper is that digital technologies for health financing should contribute to universal health coverage (UHC). To achieve progress towards UHC, digital technologies should support this. Nevertheless, digital technologies may pose risks to health financing, and the application and implementation of digital technologies face various challenges that could jeopardize their health-financing benefits. These specific risks for health financing need to be explored. In conclusion, while Nigeria’s healthcare system continues to face significant challenges, particularly with underfunding and inadequate infrastructure, digital technologies offer promising solutions to address these issues. By leveraging innovations such as mobile applications, blockchain, big data analytics, and artificial intelligence, there is potential to transform health financing in ways that could promote universal health coverage and reduce out-of-pocket expenditures. These technologies can help mobilize resources, pool funds and risks, and make health service purchasing more strategic and efficient.
However, it is crucial to acknowledge the risks and challenges associated with the implementation of these digital solutions. Ensuring that these technologies are effectively applied will require careful consideration of their potential impacts and risks. Nevertheless, with the right strategies and investments, digital technologies could be the key to democratizing access to quality healthcare, particularly in underserved areas, and ultimately achieving the United Nations’ universal health coverage mandate by 2030.
Written by
Rejoice Azodo
Lead Consultant, Vestitude Partners Limited
Development and Health Economics Expert
