Increased demand for healthcare services in Nigeria is opening lucrative investment opportunities in the construction of hospitals for investors who can effectively manage costs.
New analysis from Frost & Sullivan titled healthcare Infrastructure: revitalisation and new hospital market in Nigeria finds that the upgrade and building of new hospitals costed $125.4-million in 2010, and could reach $149-million by 2017.
“The demand for specialist healthcare services by Nigeria’s middle-class is rising. With long waiting lists for tertiary healthcare services in public hospitals, the rich often seek specialist healthcare services abroad,” says Tinotenda Sachikonye, Frost & Sullivan’s healthcare research analyst.
But, according to Frost & Sullivan, the high cost of construction, lack of investment and past instability in government may affect the pace at which additional healthcare facilities can be developed.
“Most inputs for building – apart from sand, cement and granite – are imported, and construction firms need to invest in their own sources of power and water. To ensure profitability, companies must manage costs of ventures effectively,” says Sachikonye.
Public private partnerships could prove advantageous for potential investors, as they open opportunities for subsidisation.