In a significant step towards taming disturbing drain on Nigeria’s foreign reserve through medical tourism, the Nigeria Sovereign Investment Authority (NSIA) announced on Wednesday that it is committing some $20m of its capital to build and run cancer and diagnostic centers in three healthcare institutions.
The NSIA, through its wholly-owned Healthcare Development and Investment Company (“NHDIC”) is collaborating with the Ministry of Health to execute a joint venture and other project agreements for investments in three of Nigeria’s federal healthcare institutions including, the Lagos University Teaching Hospital (LUTH), the Aminu Kano Teaching Hospital (AKTH), and the Federal Medical Centre Umuahia (FMCU).
Following series of agreements signed with all those involved in the project execution, the NSIA will deploy the funds to build, equip, maintain and operate a private centre for advanced radiotherapy treatment at LUTH. It will also build, equip, maintain and operate private modern medical diagnostic centres at the Aminu Kano Teaching Hospital (AKTH); and the Federal Medical Centre Umuahia (FMCU).
Authorities anticipate that the investments will assist in bridging the infrastructure gap in the healthcare sector and help reduce the burden of medical tourism which is estimated to drain over $1 billion in foreign exchange annually.
Similarly, the investment is intended to provide access to advanced healthcare services for the benefit of lower income families many of whom have limited access to care.
“What was signed today is a combination of two years of work, procurement, negotiations and various agreements signed with LUTH, Aminu Kano Teaching Hospital and federal Medical Centre Umuahia,” Uche Orji, MD/CEO NSIA told BusinessDay after signing the agreements.
“NSIA through its wholly owned subsidiary is actually the owner of the project, but over time, as we earn our money back, we would transfer the project to the teaching hospitals.
“At the moment, we are envisaging an average of up to ten years before we transfer, it could also be shorter.”
The Cancer Centre at LUTH will be upgraded to provide specialist care for cancer treatment while AKTH and FMCU will focus on diagnostics, providing medical microbiology services, routine chemical pathology, haematology tests and advanced radiography including MRI and CT services.
The investment is expected to upgrade these institutions to modern medical centres and significantly enhance Nigeria’s ability to treat Non-Communicable Diseases.
As part of the programme, NHDIC has procured the services of internationally renowned equipment vendors including Varian (Switzerland), Siemens (Germany), JNC International (Nigeria) and Fuji Films (Japan) to provide turnkey services including civil works, design, equipment installation and maintenance services for the centres.
“Each centre will run as a joint venture between NSIA and the respective tertiary hospital to ensure timely and efficient delivery of services. An aggregate investment of up to $20 million is expected to be injected into the project.
“Investing in healthcare remains a vital component of the Nigerian Infrastructure Fund strategy. The enhancement of healthcare infrastructure in these institutions will contribute towards raising the quality and standard of care in Nigeria with outcomes which are consistent with the 2030 agenda for sustainable development,” Orji stated, speaking on their choice of the health sector as a core investment area.
“In addition, it will demonstrate the economic potential of healthcare investments in Nigeria and catalyze private sector participation”.
Olajide Zeitlin, Chairman, NSIA said the NSIA is investing up to $10 million in the Cancer Centre at LUTH to upgrade the centre and another $10 million in AKTH and FMCU to set up advanced diagnostic centres.
“Our hope is that these modest investments will help with early detection as well as management of NCDs. We are also hopeful that our investments will catalyze larger pools of capital as we seek to attract more investors to the sector,” he said.
According to him, investing in healthcare infrastructure is one of the 5 key focus areas of the NSIA within its infrastructure investment strategy.
“Early in the development of the NSIA’s strategy, we recognized the importance of healthcare and consider it an essential investment in the future of the economy and well-being of the people.
“Today’s outcome is a culmination of months of hardwork, dedication and commitment by teams within the NSIA and across the various counter party organisations. Our pursuit in this phase of our healthcare strategy is to focus on Non-Communicable Diseases and provide treatment for cardiovascular, renal, orthopedic and oncological conditions,” he added.
The Minister of Health, Isaac Adewole said investing in infrastructure remained a key aspect of healthcare is investment in infrastructure.
He said while his Ministry believes that individuals must be empowered to track their health and encouraged to maintain positive and healthy lifestyles, it is incumbent on government to create an enabling environment for accessible, affordable and effective healthcare services locally.
“This investment, though focused on Non-Communicable Diseases, is the first of many which we believe will shape the future of healthcare in Nigeria and bring quality healthcare to many,” the minister stressed.
Chris Bode, Chief Medical Director, LUTH said the NSIA project will help the hospitals meet burgeoning health needs.
He also disclosed that the LUTH was treating about 100 cancer patients daily till recently that its radiotherapy machine spoiled.
