Nigeria’s healthcare sector needs more than additional funding to expand. It needs businesses capable of attracting capital, deploying it effectively and building institutions that can grow sustainably, healthcare stakeholders have said.
That challenge was at the centre of the inaugural First City Monument Bank (FCMB) Healthcare Summit in Lagos, where the bank unveiled a N20 billion Healthcare Fund to support private healthcare businesses.
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The fund will provide financing to hospitals, clinics, diagnostic centres, pharmaceutical companies, pharmacies, maternity homes and other businesses across the healthcare value chain.
The summit, themed “Financing Growth: Unlocking Opportunity, Building the Future of Healthcare,” brought together policymakers, healthcare providers, investors, financial institutions and development partners to examine how more private capital can be channelled into Nigeria’s health sector.
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At the heart of the discussions was a persistent financing problem: healthcare providers struggle to access affordable, long-term capital, while lenders and investors often require stronger governance, financial reporting and business structures before committing funds.
“Healthcare is a social imperative and an economic priority,” FCMB Managing Director and Chief Executive Officer Yemisi Edun said in remarks delivered by Executive Director, Corporate Services and Service Management Felicia Obozuwa. “Building a strong healthcare system requires patient, affordable and long-term capital.”
Mrs Edun said financing alone would not be sufficient. Healthcare businesses also need sound governance, capable leadership and strategic partnerships to build resilient institutions.
Through the new fund, FCMB plans to finance infrastructure expansion, medical equipment, working capital, technology adoption and other investments aimed at improving efficiency and service delivery.
The push for more private capital comes as the government increases public investment in healthcare and seeks to expand capacity across the sector.
Government investment
The Minister of State for Health and Social Welfare, Iziaq Salako, said more than N339 billion has been disbursed through the Basic Healthcare Provision Fund over the past 12 years.
Of that amount, N235 billion was disbursed in the last three years under the Nigeria Health Sector Renewal Investment Initiative, he said.
Mr Salako added that another N32.9 billion was recently disbursed to support more than 8,300 primary healthcare centres, while the government is targeting about 13,000 facilities nationwide.
Beyond healthcare facilities, the government is seeking to increase domestic production of medicines and medical equipment.
Under the Presidential Initiative for Unlocking the Healthcare Value Chain, Nigeria is targeting local production of 70 per cent of medicines and medical devices by 2030.
Mr Salako also highlighted initiatives aimed at addressing electricity constraints in healthcare facilities and creating long-term procurement opportunities for local manufacturers.
Making healthcare businesses bankable
For private healthcare operators, however, access to affordable capital remains a major obstacle to expansion.
The President of the Healthcare Federation of Nigeria (HFN), Njide Ndili, said affordable, long-term financing is one of the biggest barriers facing private healthcare businesses.
She said experience from HFN’s partnership with the PharmAccess Medical Credit Fund demonstrated that healthcare small and medium-sized enterprises could become bankable when financing is combined with technical support, capacity building and quality standards.
The challenge, therefore, is not simply increasing the amount of money available to healthcare providers but ensuring that businesses are prepared to attract and manage investment.
HFN will work with FCMB to develop a framework for pre-qualifying eligible healthcare facilities and helping businesses become investment-ready.
The federation, which has more than 400 member organisations and 4,000 professionals, will support businesses in strengthening governance, financial reporting, management capacity and growth plans before accessing financing.
From survival to scale
Discussions at the summit examined how healthcare operators can move beyond managing day-to-day pressures and build institutions capable of attracting long-term investment.
Participants explored blended finance, alternative lending structures and public-private partnerships as possible mechanisms for attracting more domestic and international capital.
An executive discussion on building healthcare businesses that attract investment also highlighted the importance of sound business management, governance, risk management and clear growth strategies alongside clinical performance.
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Four broad priorities emerged from the discussions: expanding access to fit-for-purpose capital, improving the bankability of healthcare businesses, strengthening public-private partnerships and increasing domestic capacity in pharmaceuticals, diagnostics and medical equipment.
FCMB’s N20 billion fund is positioned within that broader agenda, complementing government investment with private financing for businesses seeking to expand facilities, purchase equipment, adopt technology and improve service delivery.
The summit was organised in partnership with the Health Business Academy for Africa.
For stakeholders, the next challenge is translating the financing commitments and partnerships announced at the summit into stronger healthcare businesses and increased capacity across the sector.
The broader goal is to create a healthcare ecosystem in which stronger institutions, sustainable financing and strategic partnerships translate into greater access to quality healthcare for Nigerians.
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