The federal government has increased the capitation fee for enrollees under the National Health Insurance Authority (NHIA) from ₦750 to ₦1,450 per person, in a policy move designed to strengthen service delivery and improve healthcare outcomes.

Announcing the increase on Saturday via the X platform, Muhammad Pate, coordinating minister of Health and Social Welfare, said the adjustment marks a critical step toward ensuring adequate funding for healthcare providers and sustaining quality care across the system.

Pate explained that the new rate addresses one of the key barriers to effective service delivery, the long-standing challenge of low provider payments, which has undermined the quality of care available to millions of Nigerians enrolled in the scheme.

“For years, the capitation stood at ₦750 per person. We have doubled it to ₦1,450 to ensure providers are properly equipped to deliver consistent, high-quality care,” Pate said.

He added that fee-for-service rates have also been increased by 380%, following actuarial reviews designed to align payments with actual service costs.

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The minister highlighted that the reforms are part of broader efforts to reduce out-of-pocket spending, which currently accounts for about 70% of Nigeria’s total health expenditure.

According to him, expanding social health insurance is the “surest path” to achieving equitable access to healthcare and protecting households from financial hardship.

The minister also informed that in 2024 alone, Nigeria recorded over 2.4 million new health insurance enrollments, its highest ever, bringing total coverage to about 20 million Nigerians. He said the government aims to reach 44 million by 2030, supported by expanded infrastructure and a growing health workforce.

He said the NHIA has been directed to begin covert mystery shopping to monitor healthcare providers and ensure that insured Nigerians are not denied treatment.