MANDATORY HEALTH INSURANCE AND THE NIGERIAN WORKPLACE: A NEW ERA OF EMPLOYEE WELFARE UNDER THE NATIONAL HEALTH INSURANCE AUTHORITY ACT 2022

Abstract

The National Health Insurance Authority (NHIA) Act 2022 marks a significant shift in Nigeria’s healthcare and employment framework, transitioning from a voluntary to a mandatory health insurance model to achieve Universal Health Coverage (UHC) by 2030. Replacing the 1999 NHIS Act, the new law mandates employers with five or more staff to enroll them in NHIA-approved health insurance plans, covering employees, one spouse, and up to four children under 18, with penalties for non-compliance. This reform integrates health coverage into labour law, imposing obligations such as HMO registration, timely contributions, and record-keeping, while fostering family health protection and social welfare. For employers, particularly SMEs, challenges include cost burdens, administrative complexities, and awareness gaps, but benefits like improved employee morale, productivity, and talent retention may offset these hurdles. The Act also aligns health benefits with HR strategies, enhancing organizational development. Private sector actors, especially HMOs, play a critical role in implementation, impacting service delivery and accountability. Drawing lessons from countries like Rwanda and Thailand, the article highlights international best practices adaptable to Nigeria’s context. While the NHIA Act introduces compliance demands, it presents an opportunity for employers to invest in employee well-being and sustainable productivity. The analysis provides insights for policymakers, employers, HR professionals, and legal practitioners navigating Nigeria’s evolving health regulation landscape, emphasizing the Act’s potential to transform workplace health benefits despite implementation challenges.