Landmark Review Proposes N330 Billion Health Worker Allowance Overhaul

The Federal Government of Nigeria is moving forward with a comprehensive, multi-billion Naira reform
package for its health professionals, signaling a renewed commitment to addressing longstanding
welfare and remuneration concerns.

A landmark federal review, submitted to the Ministry of Health and Social Welfare, recommends the single largest increase to non-salary-based professional allowances in more than two decades, with an estimated total new annual spending reaching up to ₦330 billion.
The proposed overhaul, equivalent to approximately $200 million CAD at current exchange rates,
focuses on critical incentives designed to curb the massive brain drain (known locally as ‘Japa’) and
improve service delivery in difficult areas.

At the core of the recommendation is a substantial hike in allowances for health workers, particularly
those working in challenging environments. Hardship and isolation payments, crucial for attracting and
retaining staff in remote or under-equipped facilities, are set to rise by between 15% and 20%.
This move follows months of intensive collective bargaining and dialogue between the Federal Ministry
of Health and Social Welfare and key professional bodies, including the Nigerian Medical Association
(NMA) and the National Association of Resident Doctors (NARD). The allowances are part of a newly
released Professional Allowance Table, which aims to institutionalize salary relativity and address long-
standing gaps in compensation across the sector.

A senior official familiar with the review noted that the ₦330 billion annual projection covers the
projected cost of implementing the reviewed allowances across all federal cadres, including doctors,
nurses, pharmacists, and allied professionals.
The massive injection of funds into health worker welfare is not an isolated measure but is anchored
within the government’s broader “Renewed Hope Health Agenda.”

In recent months, the government has already demonstrated concrete actions to restore industrial
harmony and build confidence among the workforce:
Arrears Settlement: Over ₦50 billion has been approved and disbursed in recent months to settle
outstanding arrears and allowances, including the payment of seven months’ arrears arising from the
25% and 35% upward review of the Consolidated Medical Salary Structure (CONMESS) and the
Consolidated Health Sector Salary Structure (CONHESS).
Recruitment Drive: To directly mitigate the effects of brain drain, special waivers have been granted,
resulting in the ongoing recruitment of over 15,000 health workers across Federal Tertiary Institutions in
2025.

Training Funds: The government has also made full payment of the 2025 Medical Residency Training
Fund (MRTF), amounting to over ₦10 billion, ensuring resident doctors receive essential support for
professional examinations.
These fiscal interventions are complemented by a historic 60% increase in the nation’s health budget
over the past two years, demonstrating a top-level prioritization of health sector revitalization.
The allowance overhaul represents a significant turning point in the often-fractious relationship
between the Federal Government and health professional unions. By directly addressing the financial disincentives that have fueled emigration and recurrent strikes, authorities hope to secure sustained
industrial peace.

The Coordinating Minister of Health and Social Welfare has continuously stressed that the motivation
and stability of the health workforce are the “bedrock” of all health sector reforms. This proposed ₦330
billion annual commitment to allowances is viewed as the necessary financial muscle required to make
Nigeria’s health facilities competitive, safe, and adequately staffed, ultimately ensuring uninterrupted
and quality healthcare delivery for Nigerian citizens.

By Oyinkansola Shittu.

thewyreng