According to Fitch Solutions, the Nigerian medical device market is projected to grow at a compound annual growth rate (CAGR) of 15% between 2018 and 2023 to reach N82.7bn – an upward revision from Fitch’s previous forecast of a 13.4% CAGR for the period.
Consumables are the largest subcategory of medical devices in Nigeria, making up more than 30% of imports in 2016, according to Fitch data published in a 2019 report by Medic West Africa. This was followed by medical devices, diagnostic imaging equipment, aids, and orthopaedics and prosthetics. Although dental products represented the smallest product area, at less than 2% of imports, they were the second-fastest-growing subcategory between 2011 and 2016; orthopaedics and prosthetics were the fastest growing, posting a CAGR of 50% over the period.
These dramatic growth rates are due in large part to the fact that the market is starting from a relatively low base. By 2021 the consumables market in Nigeria was projected to reach $65.2m, followed by diagnostic imaging ($27.8m), patient aids ($17.8m), orthopaedics and prosthetics ($5.8m), dental products ($5m) and other devices ($45.8m). The bulk of medical devices and equipment in Nigeria are imported. In 2016, for example, China accounted for close to half (47%) of all medical device imports to the country, while the EU comprised one-quarter, with devices primarily coming from France and Germany. The UAE was the third- largest supplier that year, at 7% of the total, with a focus on orthopaedics and prosthetics, and patient aids. Per Fitch Solutions, medical device imports to Nigeria were up 21.6% in the 12 months to March 2018 to $116.8m; exports fell by 11.8% to around $800,000 over the same period.
Given barriers to trade and the impact of the depreciation of the naira on the import bill for medical devices, finding local or regional substitutes is a strategic objective. Some stakeholders have suggested that remanufacturing – or rebuilding products to their original specifications from used or repaired materials – could provide an alternative to more costly imports, and ultimately garner interest from original equipment manufacturers as they identify opportunities to repurpose equipment and maximise profit in emerging markets with high growth potential.
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