While the underlying fundamentals of the health care sector and Nigeria’s demographics already make a strong case for investment, government incentives are helping to increase the market’s attractiveness further. In the first year of the Covid-19 pandemic, the government issued some N100bn in credit facilities for health care that were awarded to pharmaceutical companies, goods manufacturers and medical service providers. Loans were limited to a maximum of N2bn per recipient, with interest rates capped at 5% per annum – considerably below the benchmark rate of 13.5% at the time. Another N50bn in credit was offered by the Bank of Industry.
The National Strategic Health Development Plan II (NSHDP II), covering the period 2018-22, identified pressing investment gaps in primary health care, particularly for maternal and child health, which could be addressed through increased private sector participation. “There is an array of opportunities for investors in private primary health care clinics that can provide services at an affordable cost,” AfyA Care’s Runsewe told local media. Among the NSHDP II’s objectives is ensuring that 70% of states have approved investments in universal health care (UHC) priorities. Health Financing Equity and Investment Units at the federal and state level – operating under the Department of Health Planning, Research and Statistics – will give strategic policy direction for achieving UHC targets.
Investors can also qualify for more general investment incentives, such as a 120% tax deduction for research and development expenses, or writing off long-term research as capital expenditure against profits.
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