A common misconception about investing in healthcare is that it entails establishing hospitals and is only viable for seasoned healthcare professionals with industry experience. Health investment goes beyond establishing hospitals, even though this is a critical aspect of it, and it is not just for healthcare professionals. As a matter of fact, it is a very profitable venture with returns that are more promising than those of many real estate enterprises.

Health investment is also a direct investment in economic growth, productivity, and societal well-being. This is because a robust healthcare system reduces mortality and morbidity rates, and a healthy workforce enhances national productivity and human capital development.

However, Nigeria’s healthcare sector remains underfunded, with inadequate infrastructure, limited access to essential services, and overburdened public hospitals. It is, therefore, imperative for us to not only recognize but appreciate the importance of private sector participation in transforming Nigeria’s healthcare system and service delivery. I incessantly advocate for investment from impact investors, high-net-worth individuals (HNIs), large corporations, and non-healthcare industry players who have both the financial reserves and bandwidth to change the entire face of the industry and redefine quality healthcare delivery. These stakeholders can play a pivotal role in funding critical healthcare projects that struggling small and medium-sized hospitals may be unable to finance independently. They can establish state-of-the-art healthcare facilities, equipped with sophisticated medical equipment and the latest technologies essential in medical diagnostics and treatment.

Private sector participation is more critical now than ever in the face of our current economic realities, where high lending rates from commercial banks and the almost impossible lending requirements make it difficult for healthcare facilities to access loans and debt capital.

By leveraging strategic investment opportunities in healthcare, private entities and individuals would not only make a meaningful impact in driving enhanced healthcare delivery and improving the quality of service but also reap attractive financial returns in this rapidly expanding and yet hugely untapped industry.

Why Invest in Healthcare?

1. Healthcare Investment Drives Economic Growth

• Drives economic growth through job creation.
• Reduces out-of-pocket expenses for individuals, preventing financial hardship and poverty.
• Relieves health facilities of the burden of huge financial investment required in medical equipment acquisition and quality healthcare service delivery.

2. Rising Demand for Quality Healthcare

• Nigeria has a rapidly growing middle-class population with increasing demand for specialized healthcare services like dialysis, radiology, and oncology.
• Public hospitals are overstretched, creating an opportunity for private investors to bridge the gap with modern, well-equipped facilities.

3. Government Support & Policy Frameworks

• While government spending on healthcare remains low, there is increasing recognition of Public-Private Partnerships (PPPs) in improving healthcare infrastructure.
• Incentive-driven policies, such as tax breaks and land allocations, encourage private investments in the sector.

4. Corporate Social Responsibility (CSR) Redirection

• Many corporations allocate CSR funds to short-term interventions. A more sustainable approach is investing in long-term healthcare solutions like, building rural community clinics to improve access to primary healthcare, funding the acquisition of expensive medical equipment like CT scan machines and radiotherapy equipment.

Investment Vehicles in Healthcare (By Vestitude Partners Limited)

Vestitude offers three primary models for investing in healthcare, allowing investors to engage based on their expertise, risk appetite, and financial goals:

1. Building and Owning Healthcare Facilities

• Investors can establish their own hospitals, dialysis centres, or diagnostic labs.
• Vestitude Partners provides end-to-end services, from project design and construction to full-scale management, ensuring profitability.
• This option is ideal for investors who want full ownership and long-term revenue generation.

2. Partnering with Existing Hospitals

• Instead of starting from scratch, investors can collaborate with existing hospitals to introduce new healthcare services.
• Example: Setting up a dialysis centre within an existing hospital that lacks the facility, leveraging their existing patient base and infrastructure.
• This model reduces risk and operational costs while ensuring quick returns on investment.

3. Funding Healthcare Equipment Acquisition & Expansion

• High-tech medical equipment like MRI, CT scanners, and radiotherapy machines are capital-intensive.
• Investors can finance the acquisition of such equipment in return for a structured revenue-sharing model.
• This is an attractive option for investors seeking predictable and passive income streams.

Global Case Studies Supporting Private Healthcare Investment

• Brazil & Mexico: These countries have successfully expanded healthcare coverage through private investment and public-private partnerships. Investors play a key role in financing essential services.
• India: With limited government healthcare spending, private hospitals and investors have driven innovation and accessibility, similar to what Vestitude envisions for Nigeria.

The future of healthcare in Nigeria hinges on sustained private sector participation and strategic investments that bridge existing gaps in infrastructure, accessibility, and service delivery. The private sector needs to channel resources into impact-driven, innovative healthcare projects. This will not only improve patient outcomes but also capitalize on the immense growth potential within the sector.

The best part is that Vestitude Partners Limited provides investors with verified, high-impact healthcare projects they can invest in with very competitive returns on investment. We guide investors through this transformative journey, from making decisions on which projects to invest in to ensuring that their capital is deployed meticulously for the allocated purpose while generating both social impact and financial returns.

Now is the time to seize the opportunity to be at the forefront of reshaping Nigeria’s healthcare landscape. To kickstart, simply schedule a meeting with us or send me an email directly at rejoice@vestitude.co.

I truly believe that together, we can transform healthcare in Nigeria while building a profitable and sustainable future.

At Vestitude, we are building a healthier and more prosperous world, and we want you to be a part of it.

Written by

Rejoice Azodo
Lead Consultant, Vestitude Partners Limited
Development and Health Economics Expert