Globally, healthcare is one of the fastest-growing industries in the world. Yearly, billions of dollars are generated in healthcare revenues. This is primarily because the health care industry is one industry that humans can’t do without and Nigeria is not left out. Nigeria is the most populous Black Country, with a population of over 200 million people, and this population is rapidly increasing daily. With this high population goes a remarkably high demand for healthcare services which is more often than not met with a minimal health care supply. Yearly, about 30, 000 Nigerians spend over $1 billion on medical tourism abroad. This high level of medical exodus shows that there is a significant gap in the healthcare industry waiting to be filled.
Reasons to Invest in Nigeria Healthcare Sector
There’s a Ready Market
Over one billion US Dollars is spent annually by Nigerians seeking healthcare services outside the country. This means that a considerable number of Nigerians with the requisite purchasing power are seeking high-quality healthcare which they’re not able to receive in the country due to low healthcare infrastructure. A majority of these people are rich people who have the funds to seek the medical attention they need abroad. The poor masses who don’t have the resources for medical tourism manage what they have. This unavailability of healthcare resources has resulted in a high mortality rate in the country. With the population of the country and the mortality rate, there’s evidence of a mature market and healthcare demand waiting to be filled. There’s a large healthcare gap that calls on smart healthcare investors to leverage and administer health while gaining returns on investment.Nigeria has the Resources for Pharmacological ProductsNigeria is blessed with numerous raw materials, including raw materials for drugs. The Traditional Medical System makes use of certain herbs and substances. High-tech pharmacological equipment can be used to harness these resources and turn them into quality pharmacological products.
Government Incentives and Support
The Nigerian healthcare market is huge and varied and runs on three levels. The federal government takes care of the teaching hospitals and Federal Medical Centers; the state government takes care of general hospitals while the local government takes care of primary health care centers. Additionally, the government encourages private investors to help in augmenting the level and quality of healthcare in Nigeria. The National Health Bill was signed into law in 2014 to encourage private sector participation in healthcare delivery.Some of the many incentives granted by the government in the healthcare sector include;Investment promotion and protection agreement (IPPA)Minimum local raw material utilizationTax relief for health research and developmentIn-plant trainingCapital allowanceLocal added value etc. Investment opportunities in the Nigerian Healthcare SectorThe value chain of the Nigerian health sector includes manufacturers, medical insurance providers, health service providers, retailers, distributors, health financing entities, medical education providers, research and development entities, niche healthcare providers, diagnostic facilities, health maintenance organizations etc.Comprehensively, opportunities of healthcare investment abound in;Pharmaceutical manufacturingSmallholder specialist clinicsMobile clinicsHealth insuranceSpecialist hospitalsDiagnostic and trauma centersAmbulance services amongst others.
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