BusinessHABTHE NIGERIAN HEALTHCARE SYSTEM: AN OVERVIEW
Healthcare Business:Today we are going to see How to Invest in Healthcare Business in Nigeria and make a fortune out of it. Very lucrative.Please read on.
On yearly basis, about 30,000 Nigerians spend $1 billion on medical treatment outside the country. More than half of this amount is spent in four key areas of healthcare, namely cardiology, orthopedics, renal dialysis issues and cancer.
Africa could be seen as home to at most 15 percent of the world’s population.
Though, it is the continent where about 25 percent of the world’s diseases occur.
The most populous nation in Africa, Nigeria, has a large number of cases of widespread communicable diseases.
In Nigeria, the three tiers of government run public health care system.
The Federal government saddles with responsibility of running affairs in Federal Medical Centers and University Teaching Hospitals.
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Also, the State government is responsible for running general hospitals while the local government is responsible for dispensaries.
The Federal Government signed the National Health Act and approved the establishment of state-supported health insurance scheme in late 2014 by the National Council on Health.
This has allowed the private sector the chance to play a bigger role in the delivery and financing of health services across the country.
The Nigerian healthcare sector is wide and multifaceted.
This is because it includes primary, secondary and tertiary healthcare.
Fortunately, the Nigerian Sovereign Investment Authority (NSIA) has set a goal of facilitating private sector investment in the healthcare space by establishing public-private partnerships.
How To Invest and Profit in Nigeria Healthcare System
The healthcare market in Nigeria is big and varied.
The value chain of the health care sector consist of manufacturers, health service providers, medical insurance, retailers, distributors, health financing entities, and medical education providers.
It is necessary to invest in all these areas.
Although more attention is given to investment in multispecialty hospitals, niche healthcare providers, standalone diagnostic facilities and Health Maintenance Organizations (HMOs).
A lot of investors prefer to invest in specialty hospitals and diagnostic facilities because of the high financial returns.
However, in Nigeria has low levels of investment.
If primary healthcare is run in a large enough population and an associated network of diagnostic capabilities and specialist input.
Investment in primary healthcare provision can create huge returns.
A countless investment opportunities exists across the healthcare value chain in Nigeria.
Investors interested in taking advantage of these opportunities will benefit from taking a long-term view of the market.
And keeping in consideration the dynamics of healthcare investment in developing nations.
Understand The Primary Healthcare Plan
The federal government of Nigeria launched its primary health care plan in August 1987 with the following major objectives:
- Improve collection and monitoring of health data
- Improve personnel development in the health care
- Ensure the provision essential drug availability
- Improve on immunization programs
- Promote treatment of epidemic diseases
- Improve food supply and nutrition
- Improve material and child care, and family planning
- Educate people on prevailing health problems and the methods of preventing and controlling them.
As an investors, you can design your proposed ventures to meet some of the listed objectives for fuller support from the federal government of Nigeria.
Know How to From the National Health Insurance Scheme
Some of the benefits that citizens get from the National Health Insurance Scheme include;
Out-patient Care
Maternity Care: This insurance scheme covers up to 4 live maternal births
Preventative Care: Which includes immunization, family planning and health education
Specialists Consultation
In-patient care: A citizen can access inpatient care in a standard ward for up to 15 days per year.
Preventative Dental Care
These are other services that citizens under this scheme may benefit from the government.
For instance, the Nigerian Healthcare System has freely covered children under the age of 5 and the disabled. This is a landmark that the system has achieved.
Also, the insurance scheme is quite affordable and thus citizens can be easily covered.
STUDY THE INVESTMENT OPPORTUNITIES
As earlier mentioned, Nigerians spend about $1 billion on medical tourism per annum.
Best medical tourist destinations include India, Europe, the United States and the Persian Gulf.
Apparently, a ready market of Nigerians seeking high quality medical care with the requisite purchasing power.
Though there are over 130 pharmaceutical companies in Nigeria, only 9 are listed on the stock exchange.
The indigenous pharmaceuticals companies are only able to meet about 45 percent of the total drug consumption in Nigeria.
This provides an opportunity for import substitution.
- Investment opportunities include:
- Specialist hospitals,
- Diagnostic and Trauma Centers,
- Ambulance Services,
- Mobile Clinics
- Pharmaceutical manufacturing,
- Smallholder specialist clinics among others.
The healthcare system in Nigeria is attracting foreign investors that are improving the outlook of the healthcare industry, which many describe as a growth market.
Also, there is possibility of franchise arrangements with some global health care service providers.
Under which the indigenous company will be the sole local manufacturer of some globally renowned drugs and healthcare products.
Given that the population is more than 180 million, there is a huge gap between healthcare needs and actual provisions.
Which presents huge opportunities for multinationals with extensive capacity for research and capital for investments.
Apart from that, the industry has witnessed many milestone in recent years, including a law that mandates compulsory health scheme for employees and a step-up in the anti-counterfeit and substandard drugs campaign.
Investors in the healthcare sector and the capital market have agreed that there are enormous opportunities in the healthcare.
During the quarterly sectorial dinner of the Nigerian Stock Exchange (NSE) for the healthcare sector.
The Federal Government, NSE, capital market operators.
And chief executives of healthcare firms brainstormed on the ways the capital market can foster the development of the sector.
See also: Top 25 Nursing Business Ideas & Opportunities in Nigeria
Healthcare Business
Approach and Invest in Top Pharmaceutical Companies in Nigeria
Currently, several global pharmaceutical and healthcare firms are operating in Nigeria. Some of them include:
- Pfizer Global Pharmaceuticals
- Mega Life Sciences
- VitaMedics
- GlaxoSmithKline
- May & Baker
Others are searching for acquisitions and partnerships with Nigerian companies.
As part of global investment focus on the healthcare sector.
Investment opportunities and partnerships include contract manufacturing and investment in new facilities by some health care services providers.
Read also:Top 61 Medical Practitioners Business Ideas in Nigeria
Healthcare Business
Take Advantage of The Competitive Advantage
Willingness of the federal government to facilitate private sector investment in healthcare provision, especially in the area of primary healthcare.
The National Health Bill, signed into law in 2014, provides a framework for the regulation, development and management of a national health system.
It is also specifically aimed at expanding private sector participation in the sector.
Efforts are underway to reverse the outflow of funds, in excess of $1 billion per annum, spent on medical tourism.
There is a supply gap in the pharmaceutical industry and this presents a ready opportunity for investors.
Read also:How to Start Healthcare Insurance Business in Nigeria
Healthcare Business
Competitive Labor Costs and Abundant Human Capital
Labor cost Nigeria is one of the most competitive in the world, with an average monthly wage of US$213 (according to the National Bureau of Statistics).
Nigeria has a young and dynamic population of over 70 million persons within the ages of 15 to 35.
Take Advantage of the Incentives Provided
Some of the incentives granted by government in the health care sector include:
1. Pioneer Status
2. Tax Relief for Research and Development
3. In-Plant Training
4. Minimum Local Raw Material Utilization
5. Investment Promotion and Protection Agreement (IPPA)
6. Capital Allowance
7. Local Value Added
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