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The high burden of communicable diseases, and the increasing burden of non-communicable diseases in Nigeria, often necessitates specialist hospital care. Although Nigeria has well-equipped tertiary facilities, these do not adequately meet the needs of the entire population, opening up lucrative market opportunities in the hospital construction market.

New analysis from Frost & Sullivan, Healthcare Infrastructure: Revitalisation and New Hospital Market in Nigeria, finds that the revitalisation and new hospitals’ market was valued at $125,4-million in 2010 and is estimated to be valued at $149-million in 2017.

“The adoption of more Western lifestyles by the emerging middle class in Nigeria, making them prone to non-communicable diseases, has increased the demand for specialist healthcare services,” notes Frost & Sullivan’s healthcare research analyst Tinotenda Sachikonye. “With long waiting lists for tertiary healthcare services in the country’s public sector, the wealthier portion of the population often seek specialist healthcare services abroad.”

While the continual demand for specialist healthcare services, coupled with a high economic growth rate in Nigeria, is expected to drive the construction of new hospitals, the high costs of construction, lack of investment and past instability of the government will determine the pace at which construction unfolds.

“The cost of construction in Nigeria is relatively high, since most inputs for building – apart from sand, cement and granite – are imported at a high cost and construction firms need to have capital to be able to generate their own power and source their own water,” adds Sachikonye. ”It is, therefore, important to manage costs to ensure profitable construction ventures in Nigeria.”

Investors in this sector can also seek security of investments through public private partnerships (PPPs).

“As the country strives to boost its economy, the public sector in Nigeria has indicated commitment in ensuring accessibility of healthcare services to the population,” says Sachikonye. “Partnering with the public sector may prove advantageous as this opens opportunities for subsidisation.”