Inflation numbers from the National Bureau of Statistics for October showed the composite consumer price index for health grew significantly, up 23.32% y/y. compared with 17.44% y/y in October 2022. Nigeria’s inflation ,  has been on the rise and while the impact of rising food and utility costs on headline inflation has been extensively discussed, the surging costs of drugs and healthcare services has been overlooked. There has been a consistent and significant rise in the cost of pharmaceutical products, medical services, dental services, paramedical services, and hospital services since the covid -19 pandemic. 

Health services in Nigeria are provided by both the public and private sectors. The public sector provides primary, secondary, and tertiary care while the private sector is mainly involved in primary and secondary care. For several years, the Nigerian health care sector has been facing several challenges and is currently both underfunded and understaffed. This is due to a number of factors, including the country's large population and low GDP per capita worsened by the recent Japa syndrome. As a result, many Nigerians do not have access to basic healthcare. The government’s intervention through the Basic Health Care Provision Fund (BHCPF) and the National Health Insurance Scheme (NHIS) has done little to improve access to healthcare. 

The scarcity of foreign exchange and the continuous depreciation of the Naira is having an adverse effect on the nation’s health care system. Many pharmaceuticals and medical equipment are imported, and their prices are therefore affected by fluctuations in the exchange rate. This has made many drugs unaffordable for the masses. More so, the cost of research and development of pharmaceuticals has increased significantly making production very expensive. Besides the FX debacle, the rising cost of fuel and energy prices are also contributing to the rise in the cost of pharmaceuticals and healthcare services. Considering the essential nature of health care products and services, the government needs to find effective ways to intervene urgently.