More than 75 percent of Nigerians pay for healthcare directly from their pockets, a trend health experts have described as unsustainable and dangerous to public health. This concern was at the center of discussions at the launch of Impact Healthcare Group in Abuja, an initiative created to consolidate private health businesses into a coordinated investment and service network.
The event brought together key stakeholders in Nigeria’s healthcare space—hospital owners, pharmaceutical entrepreneurs, investors, public health officials, and lawmakers—who all expressed concern about the existing healthcare financing model and outlined ways to address deep-rooted challenges such as underfunding, brain drain, and the outflow of medical capital.
Ayodele Benson, the Convener of the Impact Healthcare Group, painted a grim picture of the country’s current healthcare structure. He lamented that medical tourism alone accounts for over $1 billion in capital flight every year, mostly by wealthier Nigerians seeking treatments abroad. He shared personal experiences of escorting two patients abroad for care—one to Israel and another to Cairo—simply because the services needed were unavailable in Nigerian hospitals.
“We are bleeding money and lives,” Benson said. “Outbound medical tourism continues to widen the healthcare gap. Before one of the trips, we were asked to deposit $60,000 just to start visa processing. Now imagine how many Nigerians travel abroad daily for similar reasons.”
He added that improving healthcare supply without addressing demand constraints like affordability is futile. “Over 75% of Nigerians pay out-of-pocket for health services. If you can’t pay, you can’t get care. We need new structures to break that cycle,” he said.
As part of the group’s strategy, the Impact Healthcare Group plans to aggregate small and medium private health facilities into a national network to increase economies of scale and improve service delivery. Among its key features are:
A health discount card, offering at least 10% off medical services at partner facilities.
A private-sector-led health insurance scheme targeting the informal sector and low-income earners.
Advocacy for fiscal incentives including tax holidays, risk guarantees, and energy subsidies to encourage private investment in healthcare.
Also speaking at the event, Chibuzo Opara, co-founder and CEO of DrugStoc, echoed the need for structural changes in the sector. He said despite the complex challenges, many private players are in it not just for profit but for impact.
“Our biggest barriers to access are not just financial. We face geographic and educational gaps too,” he said. “About 70% of the cost of drugs in Nigeria comes from the supply chain and logistics. Tackling this alone could significantly reduce medicine prices.”
Opara praised the Impact Healthcare initiative as a step in the right direction, calling for stronger collaboration and data-driven planning across the private health ecosystem. “If we speak and act collectively, we can drive down costs and improve quality in a sustainable way,” he said.
Representing the Federal Government, Abdu Mukhtar, National Coordinator of the Presidential Unlocking Healthcare Value-Chain Initiative, outlined recent efforts to stimulate the sector. He said the government had:
Secured a $1 billion facility from Afreximbank for health-sector financing.
Removed VAT on medical manufacturing inputs through a presidential executive order.
Built a pipeline of over four bankable private healthcare projects within a year.
Mukhtar, represented by Nasir Sani-Gwarzo, explained that under the new Strategic Blueprint (2023–2026) by the Federal Ministry of Health and Social Welfare, efforts will be harmonized under the “one budget, one voice, one monitoring and evaluation framework” approach.
He noted that while the government is focused on enabling policies, the real engine for healthcare transformation lies in the private sector. “This is a shared responsibility. We need the private sector to innovate, take risks, and deliver results,” he added.
Senator Samaila Kaila, representing Bauchi North, called for urgency in addressing the sector’s fragility. He challenged participants to turn ideas into actionable plans that would improve lives. “We can no longer postpone reform. Let us develop a clear roadmap and start implementing,” he said.
As Nigeria’s population continues to grow, the demand for affordable and quality healthcare becomes more urgent. The Impact Healthcare Group initiative hopes to not only close the funding gap but also offer a unified voice for a sector that has remained largely fragmented and underfunded.
