The Federal Government has approved ₦40.76 billion for the third quarter of 2026 under the Basic Health Care Provision Fund (BHCPF), while extending health insurance coverage to about 90,000 inmates in correctional facilities nationwide.

The approval represents an increase of ₦7.88 billion from the ₦32.88 billion allocated in the second quarter, as the government moves to strengthen primary healthcare delivery and expand access to essential medical services for vulnerable Nigerians.

The Coordinating Minister of Health and Social Welfare, Professor Muhammad Ali Pate, announced the decisions following the 16th meeting of the Ministerial Oversight Committee on the fund in Abuja.

According to the government, the latest allocation is intended to improve the availability of basic healthcare services, particularly for low-income households and underserved communities.

Under the approved disbursement, the National Health Insurance Authority (NHIA) will receive ₦19.87 billion, representing 48.75 per cent of the fund. The National Primary Health Care Development Agency (NPHCDA) will receive ₦18.34 billion, accounting for 45 per cent.

Emergency Medical Treatment has been allocated ₦2.04 billion, or five per cent, while the Nigeria Centre for Disease Control and Prevention (NCDC) will receive ₦509.48 million, representing 1.25 per cent.

Beyond the funding approval, the committee also endorsed the extension of health insurance coverage to approximately 90,000 inmates across the country following a request by the Nigerian Correctional Service.

The initiative will be implemented through the NHIA, with regular reporting and safeguards to monitor its execution. Inmates already covered by state health insurance schemes will be excluded to prevent duplication.

The decision is expected to widen access to healthcare among inmates, a population that may face barriers to obtaining timely medical attention while in custody.

In another measure aimed at improving access to medicines, the committee approved changes to the NPHCDA funding gateway to support pooled procurement through MEDIPOOL, Nigeria’s national Group Purchasing Organisation.

The arrangement is expected to improve purchasing efficiency, establish pricing benchmarks and strengthen supply-chain monitoring, while promoting transparency and ensuring the quality of essential medicines and other health commodities.

The government also plans to expand the number of primary healthcare facilities supported by the fund from 8,309 to 13,521 nationwide. The expansion will add 5,212 facilities across the 36 states and the Federal Capital Territory.

The committee further considered a phased financing arrangement to support states in recruiting skilled birth attendants and community-based health workers, with states expected to progressively take over their funding.

Addressing concerns about delays in the movement of healthcare funds, the committee resolved to establish a subcommittee to investigate bottlenecks affecting disbursements through the fund’s gateways, states and local government areas to health facilities. The subcommittee is expected to submit its report within six weeks.

The government also directed that letters be sent to state governors outlining the financial requirements needed to strengthen the NCDC’s capacity to respond to disease outbreaks.

On accountability, Pate said the Federal Government was collaborating with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to track health sector funds and prevent their misappropriation.

He stressed that increased funding must translate into timely disbursement, transparent financial management and improved health outcomes for Nigerians.

The minister also commended the Katsina State Government for releasing ₦243 million to its State Health Insurance Agency to expand coverage under the fund, while urging other states and the FCT to fulfil their counterpart funding obligations under the National Health Act, 2014.

The latest approval forms part of broader efforts to strengthen primary healthcare financing, expand insurance coverage and improve access to essential medical services across Nigeria. However, the impact will depend on the timely release of funds and their effective use at the facility level.