The $1 billion+ opportunity: Cashing in on Nigeria’s medical tourism potential

Every year, Nigerians spend about $1 billion seeking medical treatment abroad. From celebrity childbirths to businessmen/politicians seeking cure/checkups for one ailment or another, hospitals in India, Israel and the UK play host to thousands of middle and high-income Nigerians.

Even though these patients have the money to meet their medical needs in the most sophisticated hospitals, they must endure grueling visa application processes and immigration formalities. What if this could be addressed?

But Nigerians are not alone in this. Other West African patients consistently travel to the above countries as well as France (especially from Francophone West African countries) to seek advanced medical care. They also face huge direct/indirect cost.

While these capital outflows have enormous macroeconomic consequences for the affected countries, the quality healthcare deficit also presents an opportunity for bold investors. Investment in a well-resourced advanced care facility in any major Nigerian city stands to tap into this $1 billion opportunity.

In addition, since citizens of West African countries travel freely between member states (thanks to the 90-day visa-free regime), we expect patients from nearby West African countries to cash in on the opportunity for quality healthcare near home. Patients from neighboring central African countries including Cameroon, Chad, and Gabon would further increase patient inflow.

Notwithstanding the opportunity, we expect a number of challenges. Foremost, most medical specialists lack the financial expertise and resources to take on such huge business ventures. This could be mitigated by seeking the capital-raising expertise of investment firms. Furthermore, there is the need to develop a convincing marketing campaign to assure patients of the high-quality of medical care at the facility notwithstanding its location in Nigeria. This is also achievable. If these problems are properly addressed, we expect the first set of investors to cash in on their bold move.

 

Nugwa is Nigeria’s premier Investment and Intelligence advisory firm. Corporations and Investors leverage our deep knowledge of Nigeria and the West Africa region in making intelligent investment decisions. Contact us today, or read more of our Insights.