[SPECIAL REPORT]
The nation’s
healthcare
is attracting
foreign
investors that
are improving
the outlook of
the healthcare
industry, which
many describe
as a growth
market.
• Pharmaceutical manufacturing,
• Smallholder specialist clinics among others.
The nation’s healthcare is attracting foreign investors that
are improving the outlook of the healthcare industry, which
many describe as a growth market. Furthermore, there is
the possibility of franchise arrangements with some global
healthcare service providers, under which the indigenous
company will be the sole local manufacturer of some globally
renowned drugs and healthcare products.
With a population of more than 180 million, there is a
huge gap between healthcare needs and actual provisions,
which presents huge opportunities for multinationals with
extensive capacity for research and capital for investments.
Besides, the industry has witnessed many landmark
changes in recent years, including a law that mandates
compulsory health scheme for employees and a step-up in
the anti-counterfeit and substandard drugs campaign.
Leading Pharmaceutical Companies in Nigeria
Several global pharmaceutical and healthcare fi rms are
currently operating in Nigeria. Some of them include:
• Pfi zer Global Pharmaceuticals
• Mega Life Sciences
• VitaMedics
• GlaxoSmthKline
• May & Baker
Some others are scouting for acquisitions and partnerships
with Nigerian companies as part of a global investment
focus on the healthcare sector. Investment opportunities and
partnerships include contract manufacturing and investment
in new facilities by some healthcare services providers.
Competitive Advantage
• Willingness of the federal government to facilitate
private sector investment in healthcare provision,
especially in the area of primary healthcare.
• The National Health Bill, signed into law in 2014,
provides a framework for the regulation, development,
and management of a national health system. It is
also specifi cally aimed at expanding private sector
participation in the sector.
• Eff orts are underway to reverse the outfl ow of funds,
in excess of $1 billion per annum, spent on medical
tourism.
• There is a supply gap in the pharmaceutical industry
and this presents a ready opportunity for investors.
Competitive Labour Costs and Abundant Human
Capital
Nigeria’s labour cost is one of the most competitive in the
world, with an average monthly wage of $213 (according to
the National Bureau of Statistics). Nigeria has a young and
dynamic population of over 70 million persons between the
ages of 15 to 35.
Incentives
Some of the incentives granted by the government in the
healthcare sector include:
1. Pioneer Status
2. Tax Relief for Research and Development
3. In-Plant Training
4. Minimum Local Raw Material Utilisation
5. Investment Promotion and Protection Agreement
(IPPA)
6. Capital Allowance
7. Local Value Added
Source:
https://www.nipc.gov.ng/overview-healthcare/
Nigeria-India• 2018 • 39