Ministerof Health, Prof Isaac Adewole, yesterday, advocated for increased
consumption taxes on harmful products like alcohol and tobacco, saying
the monies realised could be used for funding healthcare in the country.
He also stated that the country has the
least health budget globally, while stressing that the Federal
Government has not invested substantially in the sector.
Speaking at ThisDay Newspapers
Healthcare Financing Policy Dialogue, in Abuja, the Minister said in
2016, the government health expenditure was 0.6 per cent as a share of
GDP or just $11 per cent per capita, stressing that it was below
regional and lower middle-income averages and the recommended $86 per
cent per capita for low and middle-incomes, Nigeria’s benchmark needed
to deliver a limited setback for key health services.
Adewole explained that because of
limited government and pooled health financing, spending on health was
dominated by out-of-pocket (OOP) expenditures.
“As a result, OOP spending accounts for
75.2W per cent of total health expenditure-among the highest in the
world –and 25 per cent of households spend more than 10 per cent of
their household consumption health; a sign that more people are prone to
poverty traps if they fall ill, for a country of our size. This is not
acceptable”, he stated.
He also added that at “4.8% as a share
of GDP, Nigeria has one of the weakest revenue mobilization efforts in
the world, with resultant implications for government’s effort towards
financing sectoral projects.
“As you may know, tax revenues depend on
four factors; the tax base, the tax rate, administrative efficiency and
compliance,” he added.
On the creative funding of the health
sector, he said: “In the issue of tax rate, 5 per cent, our Value Added
Tax is one of the lowest in the world and there are opportunities to
expand this by increasing taxes on the consumption of harmful products
such as alcohol and tobacco.
In particular, our tobacco excise rates of
20 per cent are well below the 75 per cent World Health Organization
benchmark.”
The minister called on states to invest in the health
sector rather than allowing the Federal Government shoulder the
responsibility; while commending the Edo state government for its quick
response to the recent outbreak of Lassa Fever.