….Recommend 25% Of Health Insurance Funds Allocation To Sector
Amid sundry challenges mitigating efforts by governments and organized private sector’s (OPS’) to improve healthcare services in the country, experts in the sector have canvassed the need for collaborative strategies in order to tackle the problems and strengthen the healthcare sector for improved services delivery to millions of ordinary Nigerians.
The experts gave the charge on Thursday at the Nigerian Economic Summit Group (NESG), through its Health Policy Commission, during a high-level 2025 Pre-Summit dialogue with the theme “Catalytic Capital for Healthcare: Bridging Nigeria’s Systemic Gaps” held in Lagos.
The event featured senior policymakers, investors, and healthcare executives to explore how innovative, risk-tolerant financing models can strengthen Nigeria’s healthcare sector, bridge systemic gaps, and drive inclusive growth.
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In her welcome address, Facilitator of the NESG Health Policy Commission, Dr. Mories Atoki, highlighted the urgent need for strategic partnerships to achieve Universal Health Coverage (UHC), listing brain drain and underinvestment in diagnostics as critical challenges and that affordable, quality diagnostics are essential for early detection, cost-effective treatment, and improved outcomes.
Atoki noted that catalytic capital which remained strategic, risk-tolerant funding can de-risk early-stage projects, attract private investment, and unlock systemic change across the healthcare value chain, from primary care and infrastructure to local manufacturing.
Delivering his address at the event, Dr. Richardson Ajayi, quipped, “what is worth investing in?”, and described the private healthcare sector as fragmented and dominated by individual practitioners, limiting large-scale investment opportunities.
He pointed out that health insurance penetration remains low, with 70–80% of healthcare costs paid out of pocket, while limited local manufacturing forces heavy reliance on imports which he described as an unsustainable approach amid foreign exchange challenges.
In her keynote address, Co-Founder and CEO of Iwosan Investments Limited, Ms. Fola Laoye, underscored the importance of risk-tolerant financing in attracting sustainable private sector participation.
She noted that Nigeria’s healthcare market, valued at approximately N40 trillion ($15–20 billion), had been projected to grow by 7–8% annually and proposed the creation of an African Health Fund to reduce aid dependence and recommended allocating 25% of health insurance funds to infrastructure, establishing a sustainable capital base for the sector.
At the forum, a panel session moderated by Thematic Lead for Health as a Business at NESG, Dr. Ayodele Cole Benson, experts examined strategies to scale local medical manufacturing, reduce import dependence, and attract private investment.
During the discussion, the Nigeria Sovereign Investment Authority (NSIA), Ms. Olufunke Falade, spoke on efforts to supply raw materials such as APIs and excipients to support local producers while CEO/MD of Lily Hospital Group, Dr. Austin Okogun, advocated private sector-led healthcare innovation.
The Managing Director of the MTN Foundation, Mrs. Odunayo Sanya, reaffirmed the organisation’s commitment to sustainable development, describing its healthcare interventions as a “statement of faith” rooted in the belief that partnerships are vital for lasting impact.
She explained that the Foundation was actively seeking collaboration opportunities, recognising that no single entity can address systemic challenges alone. Drawing on MTN’s broader CSR track record, including infrastructure projects such as road construction,
Sanya promised the organisation’s readiness to leverage its resources, networks, and data to catalyse change, adding that MTN’s sustained investment in community health has created a platform for other corporate players to join the effort, amplifying the impact of catalytic capital.
On the way forward, participants agreed that strengthening Nigeria’s healthcare system is both a public health necessity and a driver of human capital development, economic productivity, and equitable growth. The dialogue also facilitated direct engagement between investors and healthcare providers, paving the way for future partnerships.
The Pre-Summit dialogue was part of the build-up to the 31st Nigerian Economic Summit (NES #31) with the theme “The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030” scheduled to hold in October this year in Abuja.
