In response to global funding cuts threatening health systems in many countries, Nigeria has taken a decisive step by allocating an additional $200 million to its health sector in the 2025 national budget. The move is aimed at averting the deepening impact of sudden and unplanned reductions in official development assistance, which have left health systems vulnerable, especially in developing nations.

This update was revealed by the Director-General of the World Health Organisation (WHO), Dr. Tedros Adhanom Ghebreyesus, in a statement published on the WHO’s website on Sunday.

The alarm over dwindling health funding follows an Executive Order issued in January by the Trump Administration, which imposed a 90-day suspension on foreign aid. Although a subsequent waiver was granted for lifesaving medicines and services—particularly for HIV treatment under the U.S. President's Emergency Plan for AIDS Relief (PEPFAR)—the initial disruption triggered wide-reaching consequences for health programmes around the world, including in Nigeria.

According to the WHO, 70% of its surveyed country offices have reported disruptions to health services, a result of the abrupt suspension or reduction of development aid. The organisation gathered feedback from over 100 countries in a rapid assessment aimed at understanding the evolving impact and identifying support needs. The results are troubling: nearly three-quarters of countries reported severe disruptions, with one in four experiencing complete closures of health facilities.

In some countries, out-of-pocket health expenditures have increased significantly, while healthcare workers are facing job losses, and supply chains for essential medicines and products are being compromised. Additionally, health information systems in several regions are faltering under the pressure of limited resources.

“These cuts are having real consequences,” Dr. Ghebreyesus said. “That’s why countries are now making difficult choices—revising budgets, trimming costs, and accelerating efforts to become more financially self-reliant in healthcare.”

He highlighted several examples, including South Africa’s $1.5 billion budget boost, Kenya’s request for an additional $250 million, and Ghana’s steps to bridge its health financing gap. Nigeria’s $200 million allocation is part of this wave of urgent fiscal responses.

WHO has long encouraged countries to transition from aid dependency to sustainable, domestically funded health systems. The current funding crisis is hastening that transition, albeit under challenging circumstances.

To navigate this financial strain, Dr. Ghebreyesus recommended that governments protect vulnerable populations from impoverishing health expenses, safeguard existing health budgets, and channel donor funds through national budgets for more coordinated planning. He urged nations to avoid closing health facilities or reducing essential services, suggesting efficiency improvements within health systems as an alternative.

"Efficiency gains—like better procurement practices, reducing administrative overhead, and smarter purchasing of health goods and services—can help absorb some of the financial shock," he advised.

He also pointed to potential new revenue streams. In the short term, countries can increase taxes on harmful products such as tobacco, alcohol, and sugary beverages. Nations like Colombia, South Africa, Thailand, and the Philippines have implemented such taxes, resulting in both decreased consumption and increased public revenue.

For the long term, Dr. Ghebreyesus proposed expanding social and community-based health insurance schemes, where citizens contribute to a collective fund that finances health services. While this approach may not be feasible for all—especially countries with weak tax structures or large informal economies—WHO is working with each nation to identify and tailor suitable solutions.

In cases where domestic measures fall short, the WHO chief emphasized the need for concessional loans from development banks, offering affected countries more favorable terms for health investments.

As the global health landscape faces increasing uncertainty, the WHO continues to rally international support and technical assistance to ensure essential health services remain accessible, especially for the most vulnerable.