Investors push for more private capital in Nigerian healthcare
Nigeria’s healthcare spending is projected to exceed $50 billion by 2030.
Investors are pushing for more private capital in Nigeria's healthcare sector, which is expected to generate over $50 billion in sales by the end of the decade. Currently, private companies provide more than 60% of healthcare services to Nigeria's 220 million people, but supply remains insufficient. The country spends over $1 billion annually on medical services abroad and imports 70% of its medicines.
Health insurance covers less than 10% of the population, and hospital beds are overcrowded compared to neighboring West African countries. Yemi Sadiku, an executive director for investments at FCMB Pensions, highlighted the significant gap in Nigeria's healthcare system, and FCMB Pensions launched a $15 million healthcare-focused fund last month.
Dr Ola Brown, CEO of HealthCap, a venture capital firm, emphasized the potential for healthcare to become a real asset class, moving beyond its current status as a social need funded by philanthropists and governments. However, Nigeria lags behind other African countries in securing private capital for healthcare, receiving only 8% of the $4.2 billion invested in African healthcare since 2016.
Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
