The Basic Health Care Provision Fund (BHCPF) was signed into law under section 11 of 2014 Health Act (NHAct). The BHCPF creates additional fiscal space for the health sector to enable the funding of interventions directed at the basic healthcare needs of all Nigerians.

The BHCPF utilizes two approaches to improve service delivery in at least one Primary Health Care Center (PHC) per ward in Nigeria:

1) Through direct financial investments that funding critical upgrade for PHC infrastructure, improving availability of skill staff and assuring stock of medicines and health commodities;

2) Through the purchase of a basic minimum package of health services from PHC providers at no cost to Nigerian. The fund is expected to significantly move Nigeria towards universal health coverage.

The BHCPF ensures investments in the building blocks of the health system and occurs in an innovative manner that incrementally improves the quality of care.

Based on the NHAct 2014, the BHCPF is generated from at least 1% of the consolidated revenue of government, donor partners and from any other sources inclusive of private sector and individuals on an annual basis.

States and LGAs who benefit from the fund are expected to contribute counterpart funding of 25% of the amount accruing to them from the BHCPF. The BHCPF is disbursed through the following channels and proportions as stated below:

45% of the fund is to utilize to fund 1) vaccines, medicines and health commodities (20%); 2) infrastructure, maintenance and health transportation (15%) and 3) human resource for PHC (10%).

This portion of the fund is routed through the NPHCDA via SPHCBs to at least 1 PHC centre in each political ward across Nigeria. The process of deploying this 45% of the fund and tracking its implementation and results is called the NPHCDA gateway.

Similarly, 50% of the fund is to be utilized as additional funding for health insurance for all Nigerians, targeting as priority rural and vulnerable populations.

The insurance cover which is applied by the state social health insurance agencies (SSHIA) to purchase a basic minimum health service package of care (BMHSP), which is inclusive of PHC and secondary level services.

This portion of the BHCPF is disbursed through the NHIS to SSHIAs and on to providers when they provide satisfactory care.

Thirdly, is 5% for the provision of Emergency Medical Treatment. This portion of the fund is applied by the National Emergency Medical Treatment Committee (NEMTC) constituted by the National Council on Health.

This portion focus on the establishment of an emergency ambulance service which would become the core of first responders to emergency situations nationwide.

The BHCPF is disbursed through an innovative funding mechanism with unique features that would enable direct funding to PHC that would enable them purchase what they need, when they need it and lead to transformation in service delivery.

This approach is based on learnings within the Health Sector from NSHIP & other programs which shows phenomenal transformation in service delivery when PHCs are directly funded & care is at little or no cost to beneficiaries;this is the basis of the theory of change for the BHCPF