Unlocking the potential of Nigeria’s health sector

Nigeria's Ministry of Health says over one billion dollars is spent annually on medical tourism in Nigeria. Despite the challenges faced by the sector, there is a glimmer of hope for improvement. Chioma Ogwo, Head of Non-Financial Services, Emerging Businesses at Diamond Bank, shared insights on the potential in Nigeria's health sector during a recent interview with CNBC Africa. The discussion revolved around the impact of medical tourism, government initiatives, private sector partnerships, and the outlook for the future of healthcare in Nigeria. While the foreign exchange crisis in 2017 initially seemed to discourage Nigerians from seeking medical treatment abroad, there has been a notable resilience in the trend. Ogwo noted that the recession had dampened the purchasing power of the average Nigerian, but the situation is gradually improving. With the stabilization of the currency and the FX crisis easing, there is hope for a reduction in the staggering one billion dollars spent on medical tourism. One of the key factors driving potential growth in the health sector is the active role of the government. Legal states initiated a mandatory health insurance law in 2015, with several other states following suit. This policy aims to revitalize the health sector by providing citizens with access to affordable healthcare and directing traffic to healthcare facilities. The increased flow of income to these facilities presents an opportunity for expansion, improvement in quality of care, and skill development within the sector. Despite the challenges posed by health tourism, which drained valuable resources and eroded confidence in the local healthcare system, steps are being taken to rebuild and strengthen the sector. Private sector partnerships and collaborations with organizations such as Farm Access, a Dutch non-governmental agency, have shown promise in enhancing the quality of healthcare services in Nigeria. Additionally, financial institutions like Diamond Bank are providing support through loans and investments to healthcare providers looking to upgrade their facilities. Furthermore, there is a growing trend of collaboration and innovation in Nigeria's health sector. Partnerships with foreign medical institutions and organizations like the Bill and Melinda Gates Foundation are driving advancements in skill and technology within the industry. These collaborations are crucial in addressing the healthcare needs of Nigerians and reducing the reliance on medical treatment abroad. Ogwo expressed optimism about the future of Nigeria's health sector, highlighting the positive trajectory seen in recent years. With increased government interventions, private sector support, and a focus on skill development and technology, the healthcare landscape in Nigeria is poised for significant growth and improvement.