Nigeria - Medical Equipment Nigeria - Medical Equipment
Overview
Unit: USD thousands
|
|
2016 |
2017 |
2018 |
2019 |
|
Total Market Size |
93,000 |
133,990 |
132,988 |
141,000 |
|
Total Local Production |
3,000 |
4,000 |
6,000 |
6,000 |
|
Total Exports |
5 |
10 |
12 |
12 |
|
Total Imports |
90,000 |
130,000 |
133,000 |
135,000 |
|
Imports from the U.S. |
6,460 |
9,146 |
9,512 |
9,800 |
|
Exchange Rate: 1 USD |
197 |
359 |
359 |
359 |
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
Total Local Production: Estimates from local contacts
Total Exports: Estimates from local contacts
Total Imports: Estimates from local contacts
Imports from U.S.: U.S. Census Bureau.
Compared to South Africa’s sophisticated healthcare infrastructure, the most advanced on the continent, the Nigerian medical system is still underdeveloped and lacks modern facilities. There is a wide lack of qualified medical professionals, with the country having 35,000 doctors despite needing 237,000, according to WHO figures, partially due to brain drain effects. As a result, Nigeria loses at least 1.5 billion dollars every year to medical tourism according to the Nigerian Medical Association (NMA). Of this figure, India accounts for more than half from nearly 5,000 Nigerian patients. To reverse this trend and ensure access to health for all Nigerians, the Nigerian government In February 2017, approved the second National Strategic Health Development Plan (NSHDP II). According to Prof. Isaac Adewole who was the Minister of Health, the policy provides direction necessary to support the achievement of significant progress in terms of improving the performance of the national health system. It also lays emphasis on primary healthcare as the bedrock of national health system in addition to providing financial risk protection to all Nigerians, particularly poor and vulnerable populations. An Oxford Business Group report on the Nigerian healthcare sector indicates that the Nigerian Sovereign Investment Authority (NSIA) in partnership with the Federal Ministry of Health (MoH), has signed a series of agreements to modernize and expand health care services through private sector participation. The agreements look to develop the capacity of specialist hospitals and diagnostic centers to ensure they can provide advanced medical care services. So far, a total of ten memorandums of cooperation have been signed between the NSIA, the MoH and various heath care facilities throughout the country’s six geopolitical zones, with six of the agreements already in advanced stages. For example President Muhammadu Buhari in February 2019 commissioned the newly built LUTH Cancer Care Center in Lagos with equipment supplied by Varian Inc. USA. In addition to its collaboration with the NSIA, the MoH has also set ambitious new targets to increase access to health facilities, with a specific aim to increase the number of primary health care centers (PHCs). As part of its goal to ensure access to health care for 100m Nigerians, the MoH plans to build 10,000 PHCs throughout the country with at least one PHC per ward to facilitate health care access across a wide geographic area.
In addition to improving the quality of care and expanding infrastructure, the government is also looking to reduce barriers to insurance coverage. Although Nigeria’s National Health Insurance Scheme (NHIS), introduced in 1999, targets universal coverage, penetration remains persistently low. Less than 5% of the population is currently enrolled in the NHIS, and an estimated 120 million Nigerians currently do not have health insurance coverage according to local media while other sources cite even less at just 10% of the population. Payment for treatment is largely out-of-pocket for most of the population. One major impediment to increasing participation rates is the non-mandatory nature of health insurance in Nigeria according to the NHIS. While most employees in the federal civil service are currently subscribed to the scheme, the NHIS has yet to capture most citizens, including those individuals working in the country’s large informal sector. Stakeholders in the health insurance sector such as the NHIS and health maintenance organizations (HMOs) are also calling for legislation that would make it mandatory for employers with more than 10 employees to provide health insurance. Meanwhile, the competitive nature of the insurance market means that HMOs often cut prices to gain market share, which in turn results in poorer quality services for patients. According to the NHIS, there are 40 accredited HMOs in Nigeria, with each vying for greater market share.
Leading Sub Sectors
Most private clinics cannot afford new equipment and therefore settle for used ones. Medical devices in high demand include diagnostic equipment such as Magnetic Resonance Imaging (MRI), Computed Tomography scan (CT), Digital X-Ray, Ultrasound, Mammography and Ultrasound Scans. Medical disposables especially those for testing for malaria parasites, drug abuse, and infectious diseases such as HIV/AIDS and tuberculosis will also do well in Nigeria. China is a dominant offshore supplier of very basic, low tech instruments which most private clinics can afford. All medical devices and medicines entering Nigeria must first be registered with the National Agency for Food and Drug Administration and Control (NAFDAC) prior to import. A zero-import duty applies to all medical equipment per legislation but according to the President of the Healthcare Federation of Nigeria (HFN) but an importer could pay rates reaching up to 10%.
Opportunities
With the government lacking the funds to implement its health sector plans, the private sector is emerging as the indispensable player to improve Nigeria’s healthcare fortunes. Investment opportunities exist for U.S. healthcare firms to establish hospitals and clinics with treatment capabilities and cutting-edge medical technologies. The dearth of medical expertise in Nigeria’s health sector has created opportunities for U.S. medical training and education institutions. Prospects are also emerging in hospital administration, management and consulting services.
Web Resources
www.nafdac.org.ng
http://www.health.gov.ng/
https://oxfordbusinessgroup.com/overview/opportunities-private-companies-nigerias-health-care-sector-and-efforts-improve-provision
For more sector information, e-mail: Chamberlain Eke, Commercial Specialist, U.S. Commercial Service, Nigeria, at Chamberlain.eke@trade.gov.
Local Trade Shows
Medic West Africa
October 8-9, 2019
Eko Convention Center, Victoria Island
Lagos, Nigeria
https://www.medicwestafrica.com/en/home.html
USA FAIR 2020: ACCESS NIGERIA (April 28-30, 2020 - TBC)
Eko Convention Center, Victoria Island, Lagos.
Organized by the US Commercial Service exclusively for American exhibitors to meet thousands of prospective Nigerian businesses.
(Please contact Chamberlain.Eke@trade.gov for more information)