Are you planning to build or restructure or venture in any healthcare venture in Nigeria ? Looking for information about the major healthcare players in Government, Private diagnostic centers that are available in Nigeria ? Are you looking to find out which part of the of the city’s is best to venture in or what all facilities are available and what all should be planned for new setup? In this article Hospaccx Healthcare Consultancy has mapped all on major players in terms of medical facilities and healthcare scenario in Nigeria, Africa India.
Below is the superficial and macro level survey if you need a refined market and financial feasibility or any other study related to healthcare is required you can contact Hospaccx Healthcare business consulting Pvt. ltd on firstname.lastname@example.org or email@example.com Or you can visit our website on www.hhbc.in
A COMPREHENSIVE MARKET REPORT ON NIGERIA’S HEALTHCARE
Land of opportunity for healthcare: Nigeria – Healthcare scenario
Nigeria is often referred to as the “Giant of Africa”, owing to its large population and economy. With 186 million inhabitants, Nigeria is the most populous country in Africa and the seventh most populous country in the world. Nigeria has the third-largest youth population in the world, after India and China, with more than 90 million of its population under age 18. The country is viewed as a multinational state as it is inhabited by over 500 ethnic groups, of which the three largest are the Hausa, Igbo and Yoruba; these ethnic groups speak over 500 different languages and are identified with a wide variety of cultures. The official language is English. Nigeria is divided roughly in half between Christians, who live mostly in the southern part of the country, and Muslims, who live mostly in the north. Nigeria has been home to a number of kingdoms and tribal states
Nigeria is the most populated country in Africa with a 2017 population and estimate of over 167 million people, a population on growth rate of 2.5% and average life expectancy of 54 years. Following the rebasing of Nigeria’s Gross Domestic Product (GDP) in 2017, Nigeria’s economy is now the largest in Africa, ahead of South Africa, with an estimated GDP of USUSD509.9 billion in 2017.
Nigeria is traditionally agrarian, with the agricultural sector accounting for almost 20% of the total GDP. Nigeria is also Africa’s largest oil–producing nation and the tenth largest in the world, estimated to account for 8.62% of African regional oil demand. Oil provides 90% of the country’s exports and about 75% of the government’s revenues. Activities in the Nigerian health and social work sector contributed only 0.65% of Nigerian GDP. The sector has recorded a tremendous compound annual growth rate (CAGR) of 16% over a period of 4 years spanning 2013 – 2017 and accounts for 7.38% of the Nigerian labor force, contributing 1.44% of new jobs created in quarter four of 2017 ranked 147th out of 189 economies.
The regulatory environment for business is quite complex. Nigeria was ranked 147th out 189th economies in World Bank’s 2017 Ease of Doing Business Report. Despite the challenges of doing business, Nigeria remains an important destination for foreign direct investment (FDI) because of its population, growing consumer base and strong economic growth. FDI inflows averaged USD7 billion per year from 2016 to 2017, making Nigeria Africa’s top FDI destination. 51% of the FDI inflow went to the services sector. McKinsey Global Institute (MGI) estimated that eight million households had incomes of more than USD7,500 per year – MGI’s threshold for “emerging consumers”, whose income are enough to meet their basic needs and have money left to start buying more and better food, education and health services. An estimated 35 million could be living above this threshold by 2030. Based on current trends, it is estimated that consumption of healthcare goods in Nigeria will grow by a CAGR of 16.2% from USD9 billion in 2017 to USD111 in 2030.
The federal government’s role is mostly limited to coordinating the affairs of the university teaching hospitals, Federal Medical Centers (tertiary healthcare) while the state government manages the various general hospitals (secondary healthcare) and the local government focus on dispensaries (primary healthcare which are regulated by the federal government through the NPHCDA.
The total expenditure on healthcare as % of GDP is 4.6, while the percentage of federal government expenditure on healthcare is about 1.5%. A long run indicator of the ability of the country to provide food sustenance and avoid malnutrition is the rate of growth of per capita food production; from 1970–1990, the rate for Nigeria was 0.25%. Though small, the positive rate of per capita may be due to Nigeria’s importation of food products.
Healthcare in Nigeria is influenced by different local and regional factors that impacts the quality or quantity present in one location. Due to the aforementioned, the healthcare system in Nigeria has shown spatial variation in terms of availability and quality of facilities in relation to need. However, this is largely as a result of the level of state and local government involvement and investment in health care programs and education. Also, the Nigerian ministry of health usually spend about 70% of its budget in urban areas where around 50% of the population resides.
Burden of diseases in Nigeria:
Nigeria is one of the developing countries faced with the “double burden” of persisting high prevalence of communicable diseases and rising prevalence of non-communicable diseases. Key health indicators such as maternal and infant mortality are worse than the Sub-Saharan African average and Nigeria is not on track to achieving most of the health-related MDGs by 2017
Malaria is Nigeria’s most important public health challenge and is responsible for 60% of outpatient visits to health facilities in Nigeria, 30% of childhood deaths and 11% of maternal deaths. Over 90% of Nigerians are at risk of malaria with over 100 million cases per year and about 300,000 deaths6. The Federal Ministry of Health estimates a financial loss of approximately USD8.4 million per year.
Total healthcare expenditure continues to rise in Nigeria and BMI estimated total healthcare expenditure (THE) at USD18.3 billion in 2014. Household out-of-pocket expenditure (OOP) has remained the major source, constituting about 70.3% of THE in 20098. Government expenditure on health as a percentage of GDP is below the average for Sub-Saharan Africa. Less than 5% of Nigerians were covered by any form of health insurance at the end of 2013.
About Hospitals in Nigeria:
- Most hospitals in Nigeria are owner managed with the owner/ founder as key decision maker.
- The IFC considers the current governance structures as a key contributor to the high-risk perception by investors.
- Self-financing is the most common means of financing hospital capital and operating expenditure.
- Operators consider requirements of financial institutions too stringent, interest rates too high and loan tenor too short.
- Large hospitals are focused on their needs and interested in both expansion of current facilities and procurement of equipment.
- Smaller hospitals are more interested in accessing diagnostic equipment.
- Financing for expansion and procurement of needed diagnostic and treatment equipment is the single biggest expressed need of the hospitals.
- Preference for loan financing (to avoid dilution of owner influence) and lack of collateral are key challenges
Major Hospitals in Nigeria:
- Lagoon Hospital
Lagoon Hospital is a multi-branch set-up offering highly comprehensive healthcare services. Available facilities include 52 in-patient beds at its main branch with en-suite rooms, air conditioners and cable television; 2 operating theatres, a 6 bedded Intensive Care Unit.
- Reddington Hospital
The Reddington Hospital is renowned for cardiac health services, having started out as a Cardiac Centre. Now, the hospital has grown into a multidisciplinary hospital.
- Eko Hospital
The Eko Hospital is a private comprehensive healthcare institution operating from three locations in Lagos. The main center at Ikeja is a 130-bed well-equipped hospital.
- Nicholas Hospital
St. Nicholas Hospital offers premium medical services. With its modern, state-of-the-art equipment in an up-scale environment, the hospital has earned itself the reputation of being the choice hospital for top executives who desire first medical services.
- Primus International Super Specialty Hospital
Primus Super Specialty Hospital is a state of the art institute of Specialized surgery conveniently located in the heart of Nigeria’s capital, Abuja. Primus Nigeria has 4 state of the art modular Operation Theaters, which are well equipped with latest technology and medical equipment.
Major Diagnostic Centers in Nigeria:
- Scan Care Diagnostic Center
- PathCare Nigeria
- RichCare Diagnostics
- Funbell Diagnostics
- Me Cure Healthcare
- Union Diagnostics & Clinical Services
The Nigerian health sector presents several interesting opportunities with good profit potentials. The combination of a large population, an increasing middle class with the ability to pay for services, an increasing demand for specialist services and high-quality care.
Reliable and timely data on the Nigerian health sector is not readily available for decision making, so it is pertinent for companies intending to invest in Nigeria to conduct a detailed market assessment for the specific products and services they intend to bring in.
If you need any support in planning and designing of a new hospital you can contact us: Hospaccx healthcare business consulting Pvt. Ltd on: firstname.lastname@example.org . Or you can visit our website www.hhbc.in.