Nigeria hopes to achieve Universal Health Coverage by 2030. However, poor health financing is a major obstacle towards achieving this goal. This study evaluates health system financing in Nigeria and its impact on Universal Health Coverage. It highlights the challenges of inadequate health financing and reliance on out-of-pocket payments from individuals and households. The findings from this study recommend the proper combinations of financing methods to ensure equity in access to quality health services and ensure that the cost of health services does not put the population at risk of financial hardship.