Shock therapy for Nigerian healthcare
Private investment in Nigerian healthcare has recently been on a bit of a high. There were few investors or groups with an emerging market presence that were not linked with the market. But, with its economy relapsing into self-harm, we weren’t sure what to expect from our investigation.
Nigeria has a median age in the 20s, frets obsessively, and not without reason, about communicable disease and has an economy that’s moved from 5% annual growth to negative rates within a year. None of these factors shout business opportunity for hospital groups that favour high margin segments like oncology and cardiology. By contrast, it’s greying populations, chronic disease and stable economies that are normally used to sell the health and social care sectors in Western Europe.
However, the outflow of medical tourism cash to foreign hospitals each year shows the latent demand for high quality care; the thousands of physicians practicing abroad the potential to provide it.
These phenomena are hardly new – Indian hospitals have long plied a steady trade in Nigeria – but it’s possible they are about to be addressed.
Health is gradually moving up the priority rankings of countries right across the continent. Strengthening health systems is also increasingly favoured over single condition programmes that are normally run by the third sector. And it’s infrastructure that will convince the patients and doctors to stick around.
It must also be said that it seems the private sector is wanted: conferences on African health regularly attract five or six health ministers singing the praises of PPPs. This is not something you are likely to see in Europe.
If this is true, then Nigeria, which remains oil-rich, large enough to attract big bets from private equity and faces deteriorating terms of trade, may be where it begins. That is the broad picture that emerged within this month’s feature and you can read the full piece here.
We would welcome your thoughts on this story. Email your views to Claude Risner or call 0207 183 3779.
