Overview

Table: Total Market Size Healthcare, Units: USD millions

Total Market Size = (Total Local Production + Total Imports) – Total Exports
Data Sources: 
Total Local Production:   Estimates from Industry Contacts
Total Exports: UN Comtrade
Total Imports: UN Comtrade
Imports from U.S.:UN Comtrade
Note: These figures represent medical devices, and diagnostic and laboratory testing instruments

Healthcare infrastructure in Nigeria is still underdeveloped and lacks modern medical facilities. The country’s healthcare indicators are some of the worst in Africa. It has one of the fastest growing populations globally with 5.5 live births per woman and a population growth rate of 3.2 percent annually. It is estimated to reach 400 million people by 2050, becoming the world’s fourth most populous country. Medical professionals are in short supply, with only about 23.3 doctors per 100,000 population below the WHO recommended 100 doctors per 100,000 population, partially due to the massive migration of healthcare workers overseas. Nigeria loses at least $2 billion every year to medical tourism, according to the Nigerian Medical Association (NMA). India accounts for more than half of this outflow. 

The government has introduced reforms, launched new health initiatives, and is undertaking new projects to improve the sector. In October 2023, the Government of Nigeria (GON) launched the Presidential Initiative on Unlocking Healthcare Value Chains (PVAC). The initiative aims to unlock billions of dollars of new investment into the nation’s healthcare-delivery system through a time-bound and cross-ministerial collaboration to restructure the ecosystem of Health Product manufacturing, Health Logistics services, Health Technology services, Health Retail services (e-Commerce), Health Provider facilitation, and Health Payor reforms (Third Party Administrators & Insurers). 

In August 2024, the Federal Ministry of Health in collaboration with state ministries of health and key partners, launched a $1.2 billion Sector-Wide Approach (SWAP) initiative to overhaul the country’s health system, with focus on addressing health funding challenges, staff shortages, and insufficient infrastructure. Also in August 2024, the President inaugurated the first phase of the Nigeria Sovereign Investment Authority (NSIA) Healthcare Expansion Program which plans to build and equip 23 diagnostic centers, three additional oncology centers, and seven catheterization laboratories across Nigeria’s six geo-political zones.

Leading Sub-Sectors

• Used/refurbished medical equipment
• Diagnostic equipment
• Point of care instruments such as ventilators, point of care instruments, and medical consumables
• Medical test kits especially for malaria, drug abuse, tuberculosis and HIV
• Laboratory equipment
• Pharmaceuticals 

Opportunities

Nigeria depends largely on imports for medical devices, with over 98 percent of its equipment needs supplied by imports. Local production is very limited and consists largely of syringes. The United States is competitive with medical diagnosis and therapy equipment such as magnetic resonance imaging (MRI), computed tomography scan (CT), digital x-ray, mammography, ultrasound scans, radiation therapy, and other advanced devices. With respect to vitamins, the United States has a better opportunity than most countries due to the quality of U.S. medicines. China is a dominant offshore supplier of medical devices and consumables (syringes, needles, sutures, staples, packaging, tubing, catheters, medical gloves, gowns, masks, adhesives, and sealants for wound dressing). 

The Nigeria Sovereign Investment Authority (NSIA) is undertaking a phased expansion of its healthcare program which aims to establish several diagnostic centers and interventional cardiology suites across Nigeria which will for the most part be domiciled in existing tertiary healthcare institutions. The scope of the expansion includes 22 new modern medical diagnostic centers which will provide modern radiology and pathology services, and six cardiac catheterization labs spread over the six geo-political zones of the country. The procurement would be made either as an outright purchase or a six-year lease. 

Most Nigerian hospitals still store patient records manually using traditional paper methods. This indicates a good market opportunity for simple and affordable electronic medical record (EMR) systems. Medical expertise remains in short supply. Therefore, there is a market for medical training and education services. Prospects are also emerging in hospital administration, management, and consulting services. Some innovative Nigerian companies have also identified this opportunity and are moving into the space.

The COVID-19 pandemic demonstrated the potential for telemedicine to succeed in Nigeria. The GON, which before the pandemic paid little attention to telemedicine, has begun adopting the technology as part of its public health intervention programs. E-health professionals foresee a continuing upsurge in demand for telemedicine services, a trend they say could be sustained through persistent user engagement and education on the importance of telemedicine.

Challenges

Medical devices and pharmaceutical products must be registered with the NAFDAC before they can be imported into Nigeria. This process can be painfully long and rigorous, involving the submission of several documents. Product counterfeiting is rampant, and rights enforcement is weak. Nigeria has limited funds for its healthcare procurements and projects that require overseas inputs. Therefore, U.S. companies must plan to back their project propositions with financing to be competitive. 

Local Trade Shows

Medic West Africa
April 23-25, 2025
Landmark Center, Victoria Island
Lagos, Nigeria
https://www.medicwestafrica.com/en/home.html

Resources 

NAFDAC
Federal Ministry of health and Social Welfare 
For more sector information, e-mail:  Ambrose Thomas, Commercial Specialist, U.S. Commercial Service, Nigeria, at Ambrose.Thomas@trade.gov