FCMB, stakeholders set out roadmap to move Nigeria’s health sector from survival to scale

Nigeria's healthcare sector requires more than just increased funding; it needs robust businesses capable of attracting and deploying capital effectively to build sustainable institutions. This was a central theme at the inaugural First City Monument Bank (FCMB) Healthcare Summit in Lagos, where the bank unveiled a N20 billion ($13 million) Healthcare Fund to bolster private healthcare enterprises.

The fund is designed to provide crucial financing for hospitals, clinics, diagnostic centers, pharmaceutical companies, pharmacies, and other businesses operating within the healthcare ecosystem. The summit, themed “Financing Growth: Unlocking Opportunity, Building the Future of Healthcare,” convened policymakers, healthcare providers, investors, financial institutions, and development partners to explore strategies for channeling more private capital into the sector. A key challenge identified was the struggle healthcare providers face in accessing affordable, long-term capital, while lenders and investors often demand stronger governance and financial reporting before committing funds.

FCMB Managing Director and Chief Executive Officer Yemisi Edun, represented by Executive Director Felicia Obozuwa, stated, "Healthcare is a social imperative and an economic priority. Building a strong healthcare system requires patient, affordable and long-term capital." Edun stressed that financing alone is insufficient, emphasizing the necessity of sound governance, capable leadership, and strategic partnerships for building resilient healthcare institutions. The new fund will support infrastructure expansion, medical equipment acquisition, working capital needs, and technology adoption to enhance efficiency and service delivery.

This push for private investment complements the government's increased public spending and capacity-building efforts. Minister of State for Health and Social Welfare, Iziaq Salako, reported that over N339 billion has been disbursed through the Basic Healthcare Provision Fund in the past 12 years, with a significant portion allocated in the last three years. The government is also targeting increased domestic production of medicines and medical equipment, aiming for 70% local production by 2030 under the Presidential Initiative for Unlocking the Healthcare Value Chain. Initiatives are also underway to address electricity constraints in healthcare facilities.

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Healthcare is a social imperative and an economic priority. Building a strong healthcare system requires patient, affordable and long-term capital.