The Central Bank of Nigeria has allocated N141.64 billion out of the over N10.3 trillion intervention funds to the health sector since inception, representing a mere 1% of the cumulative disbursements.
The funds were disbursed through the Healthcare Sector Intervention Facility (HSIF), an intervention program established in March 2020.
The allocation of funds to the health sector
The intervention facility was created with the dual objective of curbing health tourism to preserve foreign exchange reserves and offering long-term, cost-effective financing for the development of healthcare infrastructure.
- These funds have been mobilized through a specialized differentiated cash reserve ratio (DCRR) mechanism, earmarked specifically to offer affordable financing to Deposit Money Banks (DMBs).
- This funding is designed to facilitate the provision of credit to beneficiaries within the health sector, ensuring broader access to financial resources for healthcare initiatives.
- In the last four years, the execution of the healthcare sector intervention facility has resulted in the generation of 162,454 jobs, both directly and indirectly.
- The intervention has yielded notable enhancements in healthcare service delivery, marked by an expansion in hospital infrastructure and the acquisition of advanced medical equipment.
- This has effectively curtailed the foreign exchange demand for medical tourism, leading to significant cost savings for the nation.
- Moreover, the initiative has generated a commendable uptick in tax revenue, underlining its positive economic impact.
- Furthermore, there has been a discernible trend towards professional specialization among healthcare practitioners, signaling a qualitative improvement in the country’s healthcare workforce.
Distribution of funds since 2020
A total of 137 health and pharmaceutical companies have received support from the CBN intervention fund allocation.
Private finance initiatives (PFIs) and the Central Bank of Nigeria serve as key stakeholders in the initiative.
The Central Bank of Nigeria’s report highlights significant challenges such as difficulties in accessing forex for importing necessary equipment and port congestion, which have hindered the smooth operation of the intervention facility.
Despite these obstacles, the sustained positive impact of the intervention in the healthcare sector underscores the importance of its continuation. Moreover, as a CBN off-balance sheet funded program, its ongoing support remains crucial for the sector’s development.
