In line with the Presidential directive mandating health insurance nationwide, the National Health Insurance Authority and the Bank of Industry have signed a Memorandum of Understanding to expand health insurance coverage and reduce catastrophic out-of-pocket health spending among Nigerians, with a strong focus on businesses and entrepreneurs.
The agreement is designed to extend health insurance access to Micro, Small, and Medium Enterprises, cooperatives, and individual entrepreneurs by embedding health insurance compliance into development financing. Under the arrangement, beneficiaries of Bank of Industry funding, along with their employees, will be enrolled in NHIA-accredited health insurance schemes as part of the loan application and disbursement processes.
Speaking at the signing ceremony in Lagos, the Director-General of the NHIA said the collaboration would create a structured pathway for businesses accessing BOI facilities to also secure health insurance coverage. He described the partnership as a critical step in aligning Nigeria’s development finance architecture with national health priorities, noting that making health insurance a precondition for accessing BOI loans would improve health outcomes, reduce preventable death,s and accelerate progress toward universal health coverage.
He explained that the move follows the passage of the National Health Insurance Act in 2022, which made health insurance mandatory for all residents, and a subsequent executive directive issued by the President to ensure full implementation of the law across the public and private sectors. According to him, enforcing compliance through financing institutions is necessary to translate policy into real coverage for working Nigerians.
The NHIA leadership stressed that insurance is built on trust and that workers and entrepreneurs contributing to economic growth should not be exposed to the financial shock of illness. The partnership, he said, represents a shared commitment to sustainable healthcare financing, a stronger health system, and improved productivity, particularly among small businesses that are often most vulnerable to health-related income losses.
The Bank of Industry described the agreement as a strategic response to Nigeria’s healthcare, productivity and inclusion challenges. Its management said integrating health insurance compliance into loan engagements would strengthen enterprise resilience, protect human capital, and support long-term economic growth. The bank noted that healthy entrepreneurs and employees are better positioned to sustain operations, repay loans, and grow their businesses.
The collaboration is anchored in provisions of the NHIA Act that mandate compulsory health insurance for all residents and empower the authority to enforce compliance. By linking insurance enrolment to access to finance, the partnership is expected to drive wider adoption of health insurance among MSMEs, reduce financial vulnerability linked to illness, and support more sustainable business growth across Nigeria’s private sector.
