• Tuesday, February 04, 2025
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FEC approves $1.070bn for health, moves to tackle US funding withdrawal

Federal Executive Council (FEC) meeting

…votes N4.8bn for HIV treatments

The Federal Executive Council (FEC), on Monday, approved a total of $1.070 billion for infrastructural development in the health sector.

Wale Edun, Finance Minister and Coordinating Minister of the Economy, disclosed this on Monday, while briefing State House Correspondents after the Federal Executive Council meeting presided over by President Bola Tinubu at the Council Chambers.

The Council gave their approval in line with what was earlier approved by the International Development Association (IDA) to assist Nigeria strengthen its health care provision and delivery.

Edun noted that the fund was part of the concessional grant of the World Bank, given at virtually next to zero or at 1% interest rate, even for a period as long as 40 years.

The fund is meant for human capital development, for prosperity and equity programmes of the World Bank.

According to the Minister, the fund granted in two parts, is to improve governance around healthcare, primary healthcare, in particular, while the other one part refers to Improving the quality of service, including improving utilization of essential services also in the health system.

“So apart from two concessional loans, of 500 million Dollars each, there’s also $70 million in grant financing from other international bodies. So it’s a total of 1 billion, I think, $70 million in grant funding for the health sector”, he added.

Edun also stated that FEC approved additional N20 billion for the Nigeria Customs Service, for important projects and procurements of CNG vehicles and construction and furnishing of facilities.

Read also: Investing in health tech to transform rural healthcare in Africa

Muhammad Ali Pate , Coordinating Minister of Health and Social Welfare of Nigeria, while providing further details, revealed that three memos were approved for the Ministry.

He explained that the funding for the governance phase was to improve the financial and human resource management for health and education at the sub-national level, which all the States of the Federation can draw down from.

He said, “This facility is to incentivize recruitment, training, placement, retention of teachers for the education side and public health care workers for the health side.

“The 500 million US dollars credit for the whole primary health care is to improve the quality, utilization and resilience of the primary health care system, would be expanding the primary health care system.

He noted that the fund will help to build upon and strengthen the health care program, President unveiled in 2023, as well as accelerate the transformation, of the primary health care.

“So we have 500 million US dollars that states can tap into under this program. In addition, there are grant finance institutions of $70 million from the Global Financing Facility, additional $360 million in grant financing.

“That is not part of this package, but it’s part of the support for the reform that the President has been leading as part of building Nigeria’s human capital. So this is an important statement by this administration that in fact, investing in our people, the returns are real, not only today tomorrow, but also into the future.”

Pate noted that the Federal Government, in response to the Executive Order by Donald Trump, United States President, the Federal Government had established a Committee to look at local sources of funding in replacement for the foreign aids

“The second major approval is approved for The Presidential treatment programme for HIV patients, 150,000 treatment packs, total of 4.8 billion naira the period of four months.

“The policy is an important statement that the federal government is making to ensure that those who are already HIV infected, even though we have partners that are supporting the treatment, but federal government is already putting its resources to contribute, and we see that that is a signal that the support that the government is providing to those who are vulnerable to reduce the cost and to ensure that life saving treatment is available”, he added.

Pate also revealed that the Council had created a Committee to workout modalities for reacting to the US Government’s Policy Pronouncements on development assistance and the implications on health of Nigerians, HIV, TB and Malaria,

“While we significantly appreciate all the contribution of the US Government over the last 20 years, we continue to look forward to a constructive relationship, partnership with the US Government in the period ahead, Nigerian Government under this President, is looking towards transforming the sector that is nationally acceptable and using domestic financing, as well as other sources of financing, to ensure that those who are in treatment do not lose the treatment that they are already on.

“And accordingly, Council agreed that Committee comprising the Ministry of Finance, Ministry of Power, Ministry of Defense, Ministry of Health, Ministry of Environment as well as the Nigeria Governors Forum NGF, to start looking at the transition and sustainability plan, because the US Government is going through its 90 day reviews, so that is hope on the way, in a way that will allow us to seamlessly adjust the policy of the US government, while Nigeria appreciates and looks forward to a constructive relationship with the direction that the US government is taking”, he concluded

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