The Nigerian healthcare industry has seen a steady increase in participation from both the private sector and multilateral institutions from all over the world. These organisations have fuelled the industry with foreign direct investment, and these funds have been channelled towards advancing various facets of the healthcare value chain.

However, the industry is significantly marred by some challenges which have impacted the growth of healthcare infrastructure and operations and minimized investor confidence. These problems range from medical tourism in the place of local healthcare expenditure to a diminishing healthcare workforce across all cadres.

In a recent healthcare business meeting organised by FSDH merchant bank, which looked at financing healthcare in Nigeria, Fola Laoye, CEO, Iwosan Investment Limited noted that the private sector is delivering about 50% of health services both in the rural and urban areas, which have placed a high demand on health service. Despite the situation, many Nigerians still prefer the option of medical tourism in place of local healthcare services.

According to Laoye “Nigeria is exporting dollars and exporting doctors”. This she mentioned as major challenges affecting the growth of the Nigerian healthcare service. 

According to a report released by the Business and Sustainable Development Commission, it is estimated that the value of opportunities for organisations solving health-related challenges across Africa will be worth about $259Billion by 2030 and this could potentially create more than 16 million jobs. Africa at large is also poised to host more than 14% of all business opportunities in health and wellness, trailing only North America by the year 2030.

“For Nigeria to strategically position herself for these opportunities, the government should make efforts to achieve universal health coverage, largely through health insurance funding”.

She added that the government should also encourage public-private partnership as it would strengthen the health service and bridge gaps in the ailing sector. Other ways include attracting major capital inflows through local and foreign private equity firms.

She further stated that Nigeria needs investment for specialized healthcare services and should be made available to people in need.