The Federal Ministry of Health and Social Welfare was unable to implement its 2025 capital budget following the release of only N36m out of the N218bn appropriated for the sector, the Minister of Health, Prof Ali Pate, has disclosed.
He made the revelation on Monday during the ministry’s 2026 budget defence before the House Committee on Healthcare Services, attributing the poor capital budget performance to cash flow constraints and systemic bottlenecks in the Federal Government’s budget execution process.
“Out of the N218bn appropriated to the health sector by the parliament for the execution of capital projects in the 2025 fiscal year, only N36m was released,” the minister told the committee.
He explained that while the ministry’s personnel budget for 2025 was fully released and utilised, the capital component suffered severe funding shortfalls, largely due to the bottom-up cash planning system operated by the Office of the Accountant-General of the Federation.
The minister further stated that delays in the release of Nigeria’s counterpart contributions to donor-supported health programmes prevented the ministry from accessing some counterpart funds, thereby compounding implementation challenges.
According to him, the combined impact of these factors stalled execution of the 2025 capital budget, despite the ministry’s readiness to roll out projects and interventions.
In recent years, the Federal Ministry of Health has faced persistent difficulties in implementing capital projects due to late or minimal releases from the Federal Government, a trend that has affected investments in healthcare infrastructure, equipment procurement, disease control programmes, and primary healthcare revitalisation.
Budget documents and legislative oversight reports have consistently shown that while large capital allocations are approved annually for the health sector, actual cash releases remain low, particularly during periods of fiscal pressure, rising debt service obligations, and revenue shortfalls.
This has led to project rollovers, underutilisation of donor funds requiring counterpart financing, and delays in the completion of hospitals, laboratories, and public health facilities nationwide.
Speaking at the House hearing, Prof Pate said Nigeria’s health sector operated within established policy and planning frameworks, including Vision 20:2020, the Medium-Term National Development Plan 2021–2025, and the National Strategic Health Development Plan II.
He noted that the Nigerian Constitution and the National Health Act aimed to guarantee the right to health for all citizens, adding that the 2016 National Health Policy provided the framework for translating the National Health Act and the Sustainable Development Goals into improved health outcomes.
“The principles of Universal Health Coverage are central to the National Health Policy objective of strengthening Nigeria’s health system, particularly the Primary Health Care subsystem, to deliver quality, effective, efficient, equitable, accessible, affordable, acceptable and comprehensive health services to all Nigerians,” Pate said.
The minister disclosed that the policies guiding the 2026 budget proposal were drawn from the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper, which outlines the Federal Government’s development priorities.
He said the proposal was prepared using the Government Integrated Financial Management Information System in line with the National Development Plan 2021–2025 and aligned with the policy direction and execution priorities of the administration of President Bola Tinubu.
According to him, the 2026 budget proposal was anchored on the 2016 National Health Policy and guided by the ministry’s Strategic Blueprint Initiatives, which serve as key instruments for achieving ministerial deliverables and advancing Universal Health Coverage.
The Chairman of the House Committee on Healthcare Services, Dr Amos Magaji, directed the minister to submit comprehensive documentation on donor funds received by the ministry, including details of disbursements, utilisation, and outcomes, as part of legislative oversight of health sector financing and accountability.
