Despite numerous reforms, Nigeria’s healthcare industry’s contribution to GDP over the past five years has remained relatively low, at less than 1%. In 2021, the healthcare industry’s GDP was ₦475.5 billion, a 0.2% increase from ₦474.8 billion in 2020. These figures point to the Industry’s underperformance, which is caused by, among other things, poor infrastructure, insufficient budget allocation, medical brain drain and outbound medical tourism. The demand for healthcare services has exceeded the capacity of existing healthcare facilities and infrastructure, resulting in an industry deficit. Nevertheless, based on the identified growth drivers in the report, Agusto & Co anticipates continued expansion in the industry.
The weak macroeconomic environment, particularly the persistent depreciation of the Naira and foreign exchange volatility, has negatively impacted the operating costs of industry players. The 2022 healthcare industry report focuses on five key segments: diagnostics, medical consumables and equipment suppliers, health insurance, pharmaceuticals, and hospitals. The hospital segment, which is the largest in terms of infrastructure and personnel in the Nigerian healthcare industry, is further divided into private and public healthcare.
Our Agusto & Co. 2022 Healthcare Industry Report includes an analysis of the following:
