Lack of adequate healthcare financing is one of the factors that prevent women from getting the healthcare they need. To remove the financial barrier to maternal and child health services for women in the non-formal sector, the National Health Insurance Scheme—Millenium Development Goal and Maternal and Child Health Project established. The study was to determine the factors affecting the coverage and utilisation of the NHIS-MDG MCH project in Oyo State, Nigeria. A cross sectional facility—based empirical study was carried out. Both secondary and primary data were collected through the assessment of non-confidential records such as NHIS and hospital records and oral key informant interviews with coordinators of NHIS-MDG/MCH project in three selected local government areas. Presently, only 100 000 potential beneficiaries are expected to be covered in Oyo State, which has a population of women in the child bearing age as 1 269 514 and that of children under 5 years as 1 154 104. Lack of adequate skilled personnel at the health facilities, poor infrastructure, delay in counterpart funding by the state government, political influence, poverty, as well as poor community awareness are factors affecting the coverage and utilisation of the NHIS-MDG/MCH project. Level of coverage and utilisation of the NHIS-MDG/MCH services was low. Strategies to improve awareness, coverage and utilisation of these services among women and children in the non-formal sector should be implemented.
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