In the coming years, about a dozen middle-income countries are excepted to transition out of development assistance for health (DAH) based on their economic growth. This anticipated loss of external funds at a time when there is a need for accelerated progress towards universal health coverage (UHC) is a source of concern. Evaluating country readiness for transition towards country ownership of health programmes is a crucial step in making progress towards UHC. Using in-depth interviews, this study analysed the challenges facing the Nigerian health system in transitioning away from developmental assistance, and identifies gaps in plans to progress towards country ownership.