Over 75 percent of Nigerians finance their healthcare expenses out-of-pocket, a situation that is unsustainable and exposes millions to poor health conditions, experts have said.

Stakeholders in the private healthcare space raised the concern in Abuja at the launch of the Impact Healthcare Group, an initiative designed to consolidate private health businesses into a coordinated investment network.

The event, which brought together hospital proprietors, investors, and public sector representatives, brainstormed on how healthcare leaders are responding to systemic challenges in Nigeria’s health system, chief among them being underfunding, fragmentation, and medical brain drain.

Convener of the group, Ayodele Benson, lamented that outbound medical tourism results in significant capital flight, estimated at over $1 billion annually.

He described the current payment structure as inequitable and inefficient, saying that the new initiative aims to bridge critical gaps in healthcare access, capital mobilization, and service quality.

According to him, the health sector is being repositioned under a unified one budget, one voice, one framework model to eliminate duplication and increase transparency and accountability.

Benson said: “Our population is growing, and with it, the demand for high-quality healthcare. Yet, we still see cases where individuals are sent abroad for medical treatment. In February, I personally accompanied someone to Israel for a week because the required service wasn’t available here. Just last month, I took another individual to Cairo for the same reason.

“This gap needs to be bridged. Outbound medical tourism results in significant capital flight, estimated at over $1 billion annually. For instance, before we left Nigeria for Israel, the hospital requested a $60,000 deposit just to apply for a visa. Multiply that by the number of people traveling daily, and the financial impact becomes clear.

“Now, to address a critical issue: many Nigerians are losing their lives due to a lack of access to affordable healthcare. No matter how much we improve the supply of healthcare services, we must also create incentives to drive demand. As you rightly pointed out, in a country where over 75 percent of patients pay out of pocket for healthcare, if you don’t have the funds, you can’t access care. This is a key issue we aim to tackle through this initiative.”

He explained that the Impact Healthcare Group is aggregating small and medium-sized private health businesses into a national network to achieve scale, operational efficiency, and financial viability.

According to him, the group’s strategy includes launching a discount card that would give Nigerians a minimum 10 percent reduction on healthcare costs at affiliated hospitals, and establishing a private-sector-driven health insurance scheme targeted at low-income populations and the informal sector.

Benson urged deeper fiscal incentives to de-risk private investment in healthcare, including energy subsidies, public-private risk guarantees, and targeted tax holidays.

Co-founder and CEO of DrugStoc, Chibuzo Opara, while noting the need to democratize access to quality pharmaceutical products and healthcare across sub-Saharan Africa, identified complex challenges of building sustainable businesses within Nigeria’s fragmented health system.

He identified three major barriers to access: geographic, financial, and educational, and warned that the burden on patients remains heavy.

He argued that most players in the space are driven by purpose rather than profit, and that the future of private healthcare in Nigeria depends on tackling structural barriers that limit affordability and access.

“For many of us, the foremost priorities are saving lives, creating impact, and ensuring patients receive quality care without harm. Sustaining the business itself comes second.”

According to him, about 70 percent of drug prices come from the supply chain and logistics costs, while another 30 percent is attributed to packaging.

Opara described the launch of the Impact Healthcare initiative as a timely and strategic effort to unify private sector voices and streamline processes.

According to him, collective action is the key to building a more affordable, accessible, and resilient healthcare system in Nigeria.

Speaking at the event, National Coordinator of the Presidential ‘Unlocking Healthcare Value-Chain’ Initiative, Abdu Mukhtar, said the Federal Government had secured a $1 billion Afreximbank facility, eliminated Value Added Tax (VAT) on medical manufacturing inputs through an Executive Order, and built a pipeline of over four bankable healthcare businesses in one year.

Mukhtar, represented by Nasir Sani-Gwarzo, noted that under the Strategic Blueprint of the Federal Ministry of Health and Social Welfare (2023–2026), the government is pursuing a new approach based on one voice, one budget, one monitoring and evaluation framework to align all efforts in the sector.

He said that while the government can set the enabling policies, success ultimately depends on the innovation and leadership of the private sector.

Lawmaker representing Bauchi North Senatorial District, Samaila Kaila, urged stakeholders to develop a realistic and actionable roadmap from their deliberations, saying the time to change the trajectory of Nigeria’s healthcare system is now.