By Juliet Ezeh
Even as Nigeria records a gradual slowdown in headline inflation, the cost of staying alive is rising at an alarming pace.
Fresh data from the National Bureau of Statistics show that health inflation surged to 30.35 per cent in January 2026, more than double the country’s overall inflation rate of 15.10 per cent. While the broader economy may be showing signs of price moderation, the healthcare sector is telling a very different story — one of deepening financial strain for households.
The Consumer Price Index report indicates that the health index climbed sharply from 109.4 points in January 2025 to 142.6 points in January 2026. In contrast, the all-items index rose from 110.7 to 127.4 points within the same period. This widening gap underscores the disproportionate burden medical expenses now place on Nigerian families.
Although headline inflation eased slightly from 15.15 per cent in December 2025 to 15.10 per cent in January 2026 — and dropped significantly from 27.61 per cent recorded a year earlier — healthcare costs have remained stubbornly elevated. On a month-on-month basis, overall inflation declined by 2.88 per cent in January, suggesting some relief in average prices. However, that relief did not extend meaningfully to the health sector.
The steady climb of the health index throughout 2025 reflects persistent structural pressures. From 111.1 points in February to 122.4 in March and 126.2 in April, the upward trajectory continued through mid-year, reaching 129.9 in July and 135.3 in August. By November, the index stood at 142.3 and remained elevated into December and January 2026.
Health alone contributed 0.91 percentage points to January’s headline inflation figure. With a weight of 6.06 in the CPI basket, sustained increases in medical costs have significant implications for household consumption patterns, particularly among low- and middle-income earners.
Experts attribute the surge to a combination of factors. Nigeria remains heavily dependent on imported pharmaceuticals and medical equipment, making the sector highly vulnerable to exchange rate volatility. Energy costs for hospitals and diagnostic centres have also risen sharply, increasing operational expenses. These pressures are compounded by inefficiencies in distribution networks and limited domestic manufacturing capacity.
The situation persists despite policy efforts aimed at easing the burden. In June 2024, President Bola Tinubu issued an executive order abolishing tariffs, excise duties, and Value Added Tax on pharmaceutical machinery and raw materials. The move was intended to lower drug prices and stimulate local production. However, market realities have yet to reflect significant relief.
Reports indicate that prices of many essential medicines have climbed between 30 and 100 per cent over the past year. Stakeholders cite slow implementation of reforms, foreign exchange constraints, and high production costs as key obstacles undermining the intended impact of the executive order.
Public health physicians warn that the consequences extend beyond inflation statistics. Nigeria’s healthcare financing model relies heavily on out-of-pocket payments, meaning most citizens pay directly for consultations, medication, laboratory tests, and hospital admissions. As costs rise, more families are forced into difficult choices — delaying treatment, reducing dosage, or foregoing care entirely.
The financial strain is particularly severe for chronic disease patients requiring continuous medication for conditions such as hypertension, diabetes, and asthma. For many, monthly drug bills now consume a growing share of household income.
While food inflation slowed sharply to 8.89 per cent year-on-year in January 2026 from 29.63 per cent a year earlier, and core inflation declined to 17.72 per cent, services inflation — which includes health — remained elevated at 22.17 per cent. This contrast suggests that structural challenges in the services sector may be more resistant to short-term economic adjustments.
Analysts argue that addressing health inflation requires deeper reforms beyond tax waivers. Strengthening local pharmaceutical manufacturing, improving health insurance coverage, stabilising foreign exchange markets, and investing in energy infrastructure for hospitals could provide more sustainable solutions.
For now, the numbers tell a sobering story. While macroeconomic indicators show signs of stabilisation, the everyday cost of medical care continues to climb faster than overall prices. For millions of Nigerians, the easing of headline inflation offers limited comfort when the price of medicine, hospital treatment, and basic health services remains on an upward march.
Until structural bottlenecks in the healthcare supply chain are resolved and financial protection mechanisms are expanded, health inflation may remain one of the most painful dimensions of Nigeria’s cost-of-living crisis.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.