NHIA Mired in Controversy Over Unilateral Payment Hike
NHIA Mired in Controversy Over Unilateral Payment Hike
The National Health Insurance Authority (NHIA) has become embroiled in a fresh controversy following the unilateral decision by the Honourable Coordinating Minister for Health and Social Welfare (HCMH&SW), Prof. Ali Pate, and the Director General (DG) of NHIA, Dr. Kelechi Ohiri, to substantially increase Capitation and Fee-for-Service payments to Health Maintenance Organizations (HMOs) without the knowledge or approval of the newly appointed Governing Council Chairman, Senator Dr. Ibrahim Oloriegbe.
The payment increase, which was executed on April 3, 2025, has raised eyebrows among stakeholders in Nigeria’s health insurance ecosystem, who are questioning the financial sustainability of such a drastic hike, from ₦12 billion to ₦30 billion per quarter.
It was argued that this abrupt financial commitment could destabilize NHIA’s finances, jeopardizing its ability to meet future obligations and ensure seamless healthcare delivery for enrollees.
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Stakeholders in the health sector said that the increase is not backed by any visible improvement in healthcare services or expansion of the NHIA’s coverage.
The opaque nature of the payment has fueled speculation about potential kickbacks involving HMOs and senior officials, with insiders alleging that certain HMOs may have financially induced key decision-makers to fast-track the payment increase.
This has raised concerns about conflicts of interest and the potential for corruption.
Stakeholders are now demanding a comprehensive investigation into the circumstances surrounding the payment increase, the exclusion of the Governing Council from the decision-making process, and any potential financial impropriety or misconduct.
They are also calling for greater transparency and accountability within NHIA, to prevent similar controversies in the future.
Recall that the NHIA Act 2022 mandates the establishment of a Governing Council, granting it extensive responsibilities and decision-making authority.
However, until the recent appointment of Senator Ibrahim Yahaya Oloriegbe as Governing Council Chairman on March 11, 2025, by President Bola Ahmed Tinubu, the NHIA had been effectively managed by Prof. Pate and Dr. Ohiri.
As this controversy unfolds, all eyes are on Senator Oloriegbe, the newly appointed Governing Council Chairman.
His response to these troubling developments will be crucial in restoring confidence in NHIA’s governance and financial management. Stakeholders are eagerly awaiting his decision on whether to challenge the payment increase or review the entire process.
The implications of this controversy extend beyond NHIA, with potential repercussions for Nigeria’s entire healthcare system.