The National Health Insurance Scheme (NHIS) is a body corporate established under Act 35 of 1999 by the Federal Government of Nigeria to improve the health of all Nigerians at an affordable cost. The NHIS Act is the statutory authority for the Scheme’s benefits programmes as well sets the general rules and guidelines for the operation of the Scheme.
The evolution of the National Health Insurance Scheme dates back to 1962, when the need for health insurance in the provision of healthcare to Nigerian citizens was first recognised.
The Government had initially provided 'free healthcare' for its citizens funded by its earnings from oil exports and general tax revenue. However, the global slum in oil prices in the 1980s greatly affected Nigeria's major source of income. Government could therefore no longer afford to provide free health, and subsequently introduced several cost recovery mechanism like user charges and Drug Revolving Funds. Further more the introduction of the Structural Adjustment Programme in 1986 adversely affected the health sector allocation. These amongst other factors outlined below informed the establishment of the Scheme:
The general poor state of the nation’s healthcare services
The excessive dependence and pressure on government-provided health facilities
Dwindling funding of health care in the face of rising costs
Poor integration of private health facilities in the nation’s health care delivery system
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