While challenges persist, recent policy shifts are renewing investor confidence, slowing medical tourism, and potentially reversing the long-standing brain drain in the country’s health sector.
Policy Reforms Unlock Delayed Investments
The unification of Nigeria’s exchange rates by the Central Bank of Nigeria (CBN) and the easing of restrictions on medical imports have created a more predictable economic environment for investors. This reform has helped reduce the bottlenecks around sourcing essential medical equipment from abroad and has made capital repatriation less cumbersome.
According to Kenneth Okolie, CEO of Synlab Nigeria, one of the country’s leading diagnostics providers, the removal of currency market distortions has brought much-needed clarity. “We have continued to experience stability in accessing foreign exchange through the market,” Okolie said, highlighting the newfound ability to plan ahead with less risk.
Healthcare Operators Expand as Market Confidence Grows
The improved policy environment is already having tangible effects. Several private hospitals and diagnostic centers have begun expanding infrastructure and upgrading technologies. Notable names such as Lagoon Hospitals, Evercare, and Duchess International are modernising their surgical and maternal care facilities. At the same time, Synlab and other diagnostic firms are pursuing collaborations to strengthen Nigeria’s local diagnostic capacity.
Many are now sourcing advanced equipment like MRI scanners, haematology analysers, and intensive care systems directly from Europe and Asia, with significantly shorter wait times than before.
“The most effective part of the FX reforms for healthcare providers sourcing equipment abroad is the predictability of the exchange rate,” said a senior executive at a Lagos-based hospital. “No sharp swings. And for me, that’s helped our planning.”
A Shift Away from Medical Tourism
Nigeria’s healthcare sector has long suffered from an outflow of patients seeking medical care abroad. It’s estimated that between $1.2 billion and $2 billion is spent annually by Nigerians on overseas treatment. PwC and government data suggest over 9,000 outbound medical trips are made every month, often paid out-of-pocket.
With new investments and improved service delivery, stakeholders believe this trend may be reversed.
One of the most visible symbols of this shift is the $300 million African Medical Centre of Excellence (AMCE) in Abuja. Backed by Afreximbank and King’s College Hospital London, the multi-specialist hospital officially launched this year with a focus on cardiology, oncology, and advanced diagnostics. It aims to serve over 350,000 patients and create around 3,000 jobs.
Global Players Take a Renewed Interest
Multinational firms are also positioning themselves in response to the policy realignment. Roche Diagnostics, the world’s largest biotech company, recently announced its intention to expand its Nigerian presence beyond distribution.
“Nigeria is a critical market, and this investment supports our long-term vision for healthcare in Africa,” said Jonathan Keytel, Director of Strategy and Innovation at Roche Diagnostics Africa.
Healthcare analysts like Joseph Aniekan believe Nigeria’s size, rising medical consumerism, and improved macroeconomic outlook are attracting global attention. “This is particularly beneficial for the healthcare sector, as challenges related to currency uncertainties have started to diminish,” he explained.
Inflation and Currency Volatility Still Loom
Despite the progress, challenges remain. Inflation in Nigeria remains high—although it has eased in recent months—putting pressure on operational costs. The naira, now floated on a market-determined basis, has lost over 70% of its value since the reforms began in 2023, impacting the cost of imported goods and medical equipment.
Finbas Odey, Managing Director of Brighter Life Hospital in Abuja, shared that while business is growing, cost pressures are intensifying. “The automated operating table that used to cost N2 million now goes for N5 million,” he noted.
Outlook: Building a Healthier Future
Private sector investment currently accounts for roughly 75% of Nigeria’s total healthcare spending—one of the highest rates globally. Yet access remains limited, with only five hospital beds per 10,000 people, far below regional peers like Ghana and South Africa.
Still, analysts see the recent developments as a turning point.
“With rising digital engagement in healthcare, including telemedicine and insurance, there’s a growing opportunity for foreign entities to scale solutions across Nigeria,” said Aniekan. “Investors are strategically betting on the transformation of Nigeria’s healthcare landscape in the next few years.”