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The short answer
Health cover for staff in Nigeria is usually bought as a group plan from a Health Maintenance Organisation (HMO), either under the National Health Insurance Authority's formal sector programme or as a private plan. The NHIA's own page says its programmes cover an employee, a spouse and up to four biological children, with a 10% co-payment for drugs; premiums are set by each HMO, so get written quotes from several before you choose.
How health insurance works in Nigeria
The National Health Insurance Authority (NHIA) regulates health insurance under the NHIA Act, signed on 19 May 2022. Its site lists contributory programmes (a Formal Sector programme, an Organised Private Sector programme, GIFSHIP for Nigerians who are not civil or public servants, and private plans) and non-contributory schemes for vulnerable groups. In practice, an employer signs up with an HMO, the HMO assigns each employee to a primary hospital or clinic, and the HMO pays providers for care.
States run their own schemes too. In Abuja, the FCT Health Insurance Scheme charges non-government enrollees ₦22,500 a year, according to the FCT Administration as reported on 29 July 2025. Lagos runs Ilera Eko, covered in the Nigeria library's guide to healthcare costs in Lagos. Edo State's health insurance commission describes health insurance as mandatory under the NHIA Act and its own state law; if you employ in a particular state, check that state's agency.
What a group plan usually includes
Plans differ by HMO and by tier, so read the benefit schedule rather than the brochure. The NHIA's page sets these baseline points for its programmes:
- Cover for the employee, a spouse and up to four biological children.
- A 10% co-payment for drugs.
- Enrolment through the NHIA portal, linked to an accredited HMO.
Private tiers typically add a wider hospital list, higher limits and extras. Ask each HMO for its schedule in writing, including exclusions, annual limits, waiting periods and how emergencies outside the network are handled. Edo's scheme, for example, states a 30-day waiting period before cover starts.
What drives the cost
We could not find HMO premium tables published on official pages, so this article gives no premium figures for private plans. What we can say from public sources:
- Payments to providers have risen. BusinessDay reported on 4 February 2025 that the NHIA raised capitation by 93% and fee-for-service payments by 378% from April 2025. Higher provider payments feed into premiums.
- Tier and hospital list are the biggest levers. A plan that includes large private hospitals in Lagos costs more than one built on smaller clinics.
- Dependants. Covering a spouse and children multiplies the cost per employee.
- Group size. HMOs price groups, so a team of five may pay more per head than a team of fifty.
Worked example: budgeting a plan
This is an example only; the premiums are invented to show the arithmetic, not quotes. A UK firm has eight Lagos staff. Five want cover for themselves only, three want a spouse and two children added. One HMO quotes an example ₦200,000 a year per adult and ₦120,000 per child on the tier the firm wants.
| Group | People | Example premium | Annual cost |
|---|---|---|---|
| Staff (all eight) | 8 adults | ₦200,000 | ₦1,600,000 |
| Spouses | 3 adults | ₦200,000 | ₦600,000 |
| Children | 6 children | ₦120,000 | ₦720,000 |
| Total | 17 people | ₦2,920,000 |
Dependants account for ₦1,320,000 of the ₦2,920,000, or about 45%. Some employers pay for staff and let staff pay for dependants through payroll; whichever you choose, put it in the contract or staff handbook.
Contractors and health cover
Group HMO plans are built for employees. If your Lagos team are contractors, enrolling them as staff can blur the line between contractor and employee. A common alternative is a fixed health allowance in the contractor rate, which the contractor uses to buy their own cover. The status question is covered in hiring without an entity.
Checking an HMO before you sign
- Confirm the HMO is accredited by the NHIA.
- Ask which hospitals your staff can use near where they live, and call one or two to check they accept the HMO.
- Ask how referral authorisation codes are issued and how fast. The NHIA's 2024 complaints report, as reported in June 2025, said 47 HMOs were sanctioned, with delays and denials of referral codes among the issues.
- Ask for the claims and complaints route for staff, and a named account manager for you.
- Get the premium, the payment frequency and the renewal terms in writing.
Tax and payroll
For employees, PwC's summary of Nigerian individual deductions (reviewed 29 May 2026) lists health insurance (NHIS) contributions among the items that can be deducted. Whether a particular arrangement is treated as a deduction or a benefit depends on how it is set up, so confirm with whoever runs your Nigerian payroll. The payroll side is covered in running payroll for Nigeria staff, and other required cover in group life insurance for Nigerian staff.
Where Pryme fits
HMO premiums are usually invoiced in naira. With a Pryme Business Account you can hold pounds and naira side by side, convert with Swap when you choose, with the rate and the fee shown before you approve, and pay the HMO by Send. The Compliance agent can keep renewal dates on the calendar.
Questions people ask
How much is HMO cover for staff in Nigeria?
HMOs set their own premiums and we found no official price tables, so get written quotes. For reference, the FCT scheme charges non-government enrollees ₦22,500 a year (reported July 2025).
Who is covered under an NHIA plan?
The NHIA's page says an employee, a spouse and up to four biological children.
Is there a co-payment on NHIA plans?
The NHIA's page states a 10% co-payment for drugs.
How do I check an HMO is genuine?
Check that it is accredited by the NHIA, ask which hospitals accept it, and call one to confirm.
Sources
- National Health Insurance Authority (NHIA): home page and programmes · accessed Oct 2026
- Peoples Gazette: FCTA to sanction HMOs over delayed remittance to healthcare providers (29 Jul 2025) · accessed Oct 2026
- BusinessDay: NHIA hikes capitation by 93%, fee-for-service by 378% (4 Feb 2025) · accessed Oct 2026
- ICIR: Service failure, NHIA sanctions 49 health facilities, 47 HMOs (Jun 2025) · accessed Oct 2026
- Edo State Health Insurance Commission: insurance policy page · accessed Oct 2026
- PwC Worldwide Tax Summaries: Nigeria, individual deductions (reviewed 29 May 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.