Business

How under-investment affects Nigeria’s health sector – USAID official

Published

2 weeks ago

May 8, 2024

Under-investment has been highlighted as one of the key issues affecting the health sector.

This was discussed during a loan partnership agreement of $10 million between First City Monument Bank (FCMB), the United States Agency for International Development (USAID), and the U.S. International Development Finance Corporation (DFC) to strengthen

Nigeria’s private health sector

The event had the presence of Melissa Jones, Mission Director of USAID Nigeria; Mrs. Yemisi Edun, Managing Director of FCMB; and other stakeholders from USAID and the International Finance Corporation (IFC).

Jones indicated that as Nigeria is struggling to meet the 2001 Abuja Declaration goal of allocating 15% of its budget to health amid competing national priorities, private investment in the sector is increasingly crucial to bridge the gaps.

This has led to a limit on access to finance which has remained a central concern for the numerous small businesses that dominate Nigeria’s health sector.

This, she said, impedes businesses’ ability to expand, diversify products and services and, in some cases, to operate.

Therefore, the financing opportunities being provided to selected private healthcare sector MSMEs would improve their ability to provide basic healthcare services to reach Nigeria’s growing population.

What she said

Speaking to Nairametrics, Jones stated that the loan would improve access to finance for businesses in the health sector, particularly micro, small, and medium-sized enterprises, and underserved populations, including women and youths.

“Nigeria is facing challenges in the health sector. According to the World Health Organisation, Nigeria ranks 187th out of 191 countries in health system performance”.

“Limited access to finance remained a central concern for the numerous small businesses that dominate Nigeria’s health sector”, she said.

Therefore, the agreement would advance the government’s efforts to achieve Universal Health Coverage (UHC) and improved healthcare for Nigerians.

Yemisi Edun, Managing Director of First City Monument Bank (FCMB), agreed that a robust healthcare system forms the foundation of national development.

She highlighted that with the rapid adoption of healthcare technologies, Nigeria’s health sector holds the potential for holistic transformation.

Edun noted that FCMB is eager to play a significant role in this journey by bridging long-standing gaps, enhancing efficiency, and ultimately supporting the sector in providing better care for Nigerians.

USAID to provide technical assistance on loan

Jones further highlighted that beyond financing, USAID will also provide technical assistance to FCMB to support the bank’s loan and monitoring processes.

“The technical assistance project will support FCMB to tailor loan products to the specific needs of its target market, develop a pipeline of beneficiaries, and increase their credit worthiness”.

“In addition to this health loan portfolio, we are committed to working with FCMB to disburse loans to the agriculture and renewable energy sectors through our existing partnerships,” Jones said.

Also, according to Edun, the facility is a catalyst for progress, which would fuel services, expand infrastructure, and instill hope within the sector.

She also commended the DFC for its commitment to improving local access to quality healthcare and for investing in a healthier, more productive future for Nigerians by addressing the financing gap in the healthcare value chain.

She noted, “This facility represents a catalyst for progress, fueling services, expansion of infrastructure, and instilling hope within the sector.”