Employers across Nigeria have been urged to convert workers’ medical allowances into health insurance premiums, in line with the provisions of the National Health Insurance Authority (NHIA) Act 2022.
Otunba Lekan Ewenla, Chief Executive Officer of Ultimate Health Management Services, said the move would significantly reduce out-of-pocket healthcare spending while improving workforce productivity.
“The law requires employers with at least five workers to enrol their staff in a health insurance programme,” Ewenla said, emphasising the need for stronger awareness and sensitisation to improve compliance.
He noted that employers could achieve this without incurring additional costs by redirecting existing medical allowances into health insurance premiums.
Ewenla made the call during the launch of the Group, Individual, and Family Social Health Insurance Programme, where he highlighted the benefits of increased enrolment in health insurance schemes.
“With the NHIA Act 2022, participation is now mandatory, and enforcement is key to ensuring that all employers comply and that employees receive the coverage they are entitled to,” he said.
The programme provides healthcare coverage at an annual premium of ₦38,718 per person. Ewenla added that wider adoption of health insurance would strengthen healthcare infrastructure and increase financial inflows into the health sector.
The NHIA Act 2022 empowers the Authority to regulate private health insurance products, addressing concerns such as arbitrary premium reductions and inconsistent benefit packages.
“Any private health insurance plans marketed by a Health Maintenance Organisation shall be subjected to approval by the Authority,” Ewenla quoted from the Act.
The Federal Government aims to enrol 40 per cent of the population in health insurance schemes by 2030. Supporting this goal, the Director-General of NHIA, Dr. Kelechi Ohiri, stressed the importance of incorporating the informal sector.
The Healthcare Providers Association of Nigeria also called for the full enforcement of the mandatory health insurance provision, noting that 60 per cent of Nigerians operate within the informal sector.
