In a bid to improve funding within Nigeria’s healthcare sector, industry experts are calling for the establishment of a National Health Bank to facilitate access to modern medical equipment and enhance healthcare infrastructure.
The proposed health bank would function as a specialized financial institution, distinct from the Federal Ministry of Health, addressing the long-standing funding gaps that have hindered the development of the country’s healthcare system.
Medical professionals have likened the initiative to the role of the Bank of Industry, which supports infrastructure development across industries. They envision the health bank as a key driver in financing the purchase of advanced medical equipment, infrastructure development, research, and training programs within the healthcare sector.
In 2021, the Nigerian Medical Association (NMA) urged the Federal Government to create a health bank that would offer single-digit interest loans to private healthcare providers. The goal is to enable the establishment of world-class healthcare facilities in Nigeria, reducing the reliance on medical tourism and boosting the country’s internally generated revenue.
Prof. Innocent Ujah, former President of the NMA, emphasized that while healthcare is inherently costly, a health bank could help the private sector secure low-interest funding, enabling the provision of high-quality healthcare services domestically.
Healthcare professionals underscored the potential benefits of a health bank, particularly in providing sustainable funding for critical healthcare projects. They noted that such a bank could offer loans and grants to healthcare facilities, support innovative health projects, and facilitate public-private partnerships. This, in turn, would improve the quality and accessibility of healthcare services, especially in underserved regions of the country.
Dr. Babatunde Rosiji, Medical Director at the State Specialist Hospital in Ikole, Ekiti State, explained that the NMA had long been advocating for a dedicated health bank to enhance the growth of the healthcare sector. According to Rosiji, this bank would function similarly to the Bank of Industry by providing low-interest loans to healthcare facilities, which are essential to supplement the country’s overstretched public healthcare system.
“With Nigeria’s population exceeding 200 million, the Federal Government’s healthcare facilities alone cannot meet the needs of all citizens. A health bank would offer much-needed financial support to private entities, ensuring they can continue to deliver critical services. Many hospitals in Nigeria are at risk of closure due to economic challenges, and a health bank would alleviate some of these burdens,” Rosiji said.
He further emphasized that many countries, including Turkey and members of the Apollo healthcare network, have thriving healthcare sectors largely due to structured financial support provided by their governments. A health bank, Rosiji argued, would help bridge the gap by providing private healthcare providers with the necessary financial backing to offer world-class services.
Rosiji stressed the importance of an independent management structure for the proposed health bank. He argued that direct control by the Ministry of Health could lead to bureaucratic delays that have historically hindered similar initiatives. Instead, a separate governing body comprised of healthcare professionals, financial experts, and relevant stakeholders should oversee the bank’s operations to ensure efficiency.
The funding model for the health bank, according to Rosiji, should follow a “basket funding” approach, drawing from diverse sources such as government allocations, private investments, and philanthropic contributions. He noted the importance of engaging philanthropists and international foundations to support the initiative.
Dr. Lolu Ojo, a Consultant Pharmacist and Managing Director of Merit Healthcare Limited, also voiced his support for the establishment of a health bank. He stated that anything that enhances the dynamism of the healthcare sector and reduces the cost of care would be a welcome development. Ojo emphasized that the bank should be managed by professionals with minimal government interference to ensure its success.
Similarly, Eze Onyekpere, Lead Director of the Centre for Social Justice, reiterated the need for innovative and alternative funding mechanisms for the health sector. Speaking at a workshop supported by the United States Agency for International Development (USAID), Onyekpere highlighted the importance of structured financial solutions in advancing healthcare in Nigeria.
Experts believe that the establishment of a National Health Bank is not only critical for improving healthcare services but also for addressing issues such as quackery and substandard practices. By setting high standards and providing accessible funding to legitimate healthcare providers, the health bank could contribute to the overall improvement of the sector, ensuring that only facilities adhering to these standards thrive.
In conclusion, the proposed health bank is seen as a necessary step toward ensuring affordable, quality healthcare for Nigerians. It would provide vital financial support to private healthcare providers, helping them overcome economic challenges and improving access to healthcare services across the country. The initiative, experts say, is long overdue.
