The fall in oil prices in the global market which emerged in 2014 and the introduction of some austerity measures by the Nigerian government may adversely affect all sectors of the economy and the health sector is part and parcel of the economy. AJUMA EDWINA OGIRI takes a look at how the global fall in oil prices may affect the Nigerian health sector in terms of funding, financial allocations and releases to the sector, particularly if the health sector in this crucial MDG target year is not given topmost priority by the various levels of government
If during times when global oil prices were attractive with oil selling for over $100 per barrel, Nigeria’s health sector was still generally challenged with poor budgetary provisions and funding. One wonders what will happen in 2015 with the sharp fall in global oil prices. Indeed, aside from only very few state governments in Nigeria, most governments at Federal, State and Local levels are often in gross breach of the 2001 Abuja declaration of African Heads of State which prescribed that a minimum of 15% of Government’s budget should be allocated to the health sector. Also, the percentage allocation to the health sector in the 2015 and 2014 Federal budgets were not inspiring as they were less than the percentage allocated to the health sector in the 2013 budget.
Analyst have often wondered why the scenario is like this, given that the health sector is very strategic to the sociopolitical and economic development of any nation. From the Nigeria Medical Association (NMA) point of view, fear is being expressed that “if the economic challenges are not well managed and the expected funding difficulties in the health sector in 2015 is not mitigated by the various levels of government and health authorities, it may adversely affect the productivity of the work force and further worsen the economic state of Nigeria, particularly due to loss of man hours from ill-health on account of a greater number of Nigerians likely to either indulge in catastrophic health expenditures in 2015 or patronise quacks with the attendant complications to their health and well-being.”
In a statement signed by the Vice President (WAR), Commonwealth Medical Association and immediate Past President, Nigerian Medical Association, Dr. Osahon Enabulele, “One will not be surprised to see a slowing down of various national, state, local and institutional health programmes and services, with consequent negative impact on the quality of health care services, patient care and the health of Nigerians. This is more so as most public health institutions and agencies in Nigeria are already groaning under the pains of reduced revenues and subventions in the out gone year, 2014.
“I therefore wish to call on all levels of government to institute more imaginative strategies in their management of the current economic crisis resulting from the global fall in oil prices in a way that takes into account the need to substantially insulate the health sector, preserve and protect the health of the people and encourage greater investments in the health
sector.”
“This is the time for all levels of government to grant tax reliefs and import duty waivers to providers of healthcare and hospital equipment, as well as institute the promised Health and Hospital Development Fund (HHDIF).”
“The Federal, State and Local Government Authorities should not be deterred from devoting adequate resources to health as well as ensuring allocative efficiency, inspite of the global oil crisis and some other competing demands of government. This is in realisation of the strong nexus between quality health care and economic development.”
According to him, the government must remain guided by the fact that investments in the health of the people is needed to reverse brain drain, improve Nigeria’s health indices and engender substantial economic and social returns for the country through a productive economy driven by healthy citizens of Nigeria.”
“The year 2015 is undoubtedly a crucial year for the Nigerian health sector and the health of Nigerians. If Governments at Federal, State and Local levels do not explore imaginative approaches in managing the ripple effects of the global oil crisis, I am doubtful if Nigeria can successfully breast the tape in the race to the attainment of the Millennium Development Goals (MDGs),” he added.
In an exclusive chat with Blueprint, the Managing Director, Pahlycon Hospital, Bauchi, and National P.R.O.Guild Of Medical Directors, Dr. Hassan Garba, said “most countries in the world when making budgetary allocations, there’s usually something allocated to health. Now, once you have a drop in the source of revenue, Nigeria in perspective this time, definitely it is going to affect all sectors of the economy and health sector is not left out.
“Therefore you will discover that funding for health will start dropping, and this is the kind of situation where we will start talking about NHIS, because if it is fully functional and all stakeholders are playing their roles to see to it that it is running very well, then, that impact will be absorbed easily by the health sector because they already have a problem on ground, all they need to do is to see that it works so that whatever it is, they can absorb the shock.
“That is not only it, even donor agencies and contributors, especially those residing in oil based countries, will begin to suffer. Unfortunately even before the drop in oil prices, there was already donor apathy globally; it’s a recession.
“International donors will have their own problem, but fortunately in Nigeria we already have a blueprint for the solution, it’s a question of deciding to make it work on our own so that the health sector should not feel the impact. At least if anything, whatever economy you have in this world, if the health sector suffers, everything else suffers. Health is wealth.”
