Business News of Saturday, 20 December 2025

Source: www.nationsonlineng.net

Nigeria, US seal $5b health pact to boost disease control, system resilience

Nigeria and the United States have signed a landmark technical Memorandum of Understanding (MoU), valued at about $5 billion to deepen bilateral health cooperation, strengthen health security and build a more resilient national health system capable of preventing and containing infectious disease threats.

Under the agreement, which takes effect from April 2026 to December 2030, the United States government will provide nearly $2b in grant funding, while Nigeria is committing to allocate at least six percent of executed annual fed2eral and state domestic budgets to health, a pledge expected to mobilise close to $3b within the same five year period.

The funding framework has already been factored into the Federal Government’s proposed 2026 Appropriation, underscoring the administration’s intention to anchor the partnership within Nigeria’s domestic fiscal planning, the Coordinating Minister of Health and Social Welfare, Prof Ali Pate, said.

The MoU, signed by officials of both governments, according to a statement by the Minister on Friday, is designed to strengthen cooperation in the early detection, prevention and control of emerging, re emerging and existing infectious diseases in Nigeria, including HIV/AIDS and tuberculosis.

Beyond disease control, the agreement covers the enhancement of disease surveillance systems, improved safety procedures for pathogen sample collection, transportation, storage, testing and disposal, as well as support for primary healthcare, financial protection mechanisms and technical assistance across the health sector.

Under the framework, both countries will work more closely to prevent the spread of infectious disease threats, while simultaneously strengthening the foundations of Nigeria’s health system to respond more effectively to future outbreaks.

A central feature of the agreement is its alignment with Nigeria’s long term goal of health sector self reliance.

While the United States will provide substantial grant funding in the initial years, Nigeria plans to progressively increase its health spending as a share of the national budget, with external financing expected to gradually decline by 2030.

The approach reflects a deliberate shift away from long term aid dependence towards trade and investment based partnerships that support sustainable domestic financing of healthcare.

Officials said the MoU represents the culmination of sustained engagement between both governments to build a health system capable of preventing, detecting and treating diseases, expanding access to quality primary healthcare and attracting private sector investment critical for long term sustainability.

The agreement is strategically structured around seven core areas of cooperation, which include surveillance and outbreak response, laboratory systems, health commodities, frontline healthcare workers, data systems, and strategic investment and technical assistance.

The Federal Government described the pact as a major step towards consolidating recent health sector reforms and strengthening national preparedness against public health threats.

While the partnership is focused on health cooperation, both countries acknowledged that progress in other areas of mutual concern would continue, and that either party retains the option to pause, extend or opt out of the agreement in the event of insufficient progress.

The government expressed appreciation to the United States for its renewed commitment to deepening health cooperation and reaffirmed its determination to implement the agreement in line with Nigeria’s national interests.

It also extended gratitude to development partners for their continued collaboration and support.

The new partnership builds on reforms already underway in Nigeria’s health sector, when, in 2023, the Federal Ministry of Health and Social Welfare launched the Nigeria Health Sector Renewal Investment Initiative (NHSRII), aimed at improving healthcare accessibility, affordability, quality, accountability and efficiency nationwide.

The initiative is being implemented through a Sector Wide Approach (SWAp) designed to align federal, state and local governments, agencies, civil society, the private sector and development partners under a unified sector plan, budget and reporting framework.

The reform drive was reinforced in December 2023 with the signing of the Health Sector Renewal Compact under the leadership of President Bola Ahmed Tinubu, which brought together all 36 state governors, the Federal Capital Territory Administration and development partners, signalling high level political commitment to building a unified, efficient and resilient health system for all Nigerians.