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Opposition Groups Settle On Nigeria Health Insurance Launch

March 2, 2005

Groups representing Nigerian health sector workers and officials appear to have dropped much of their opposition to the government's plans to launch a new socialised healthcare framework, known as the National Health Insurance Scheme (NHIS), on May 29. Concerns had focused on the cost of the scheme, as well as its limited coverage in restricting coverage mainly to heads of households.

The new system will oblige both public and private employers to contribute 15% of worker salaries to a preferred Health Maintenance Organisation (HMO), which will then in theory arrange the necessary care. However, it appears that the government will bear the scheme's cost for a period of two years, purportedly as a means to gain contributors' trust ahead of the introduction of employee contributions.

Nevertheless, observers note that the government has failed to introduce the scheme on three occasions since the early 1980s, and that it could present new opportunities for corruption, the traditional scourge of much of the country's healthcare sector. Much of Nigeria's drug distribution sector is operated by illegal cartels, and poor-quality copy drugs account for the majority of the market.