Trade & Investment
There is obviously a ready market of Nigerians seeking high quality medical care with the requisite purchasing power. Although there are over 130 pharmaceutical companies in Nigeria, only 9 are listed on the stock exchange. Of the total drug consumption in Nigeria, the indigenous pharmaceuticals companies are only able to meet about 45 percent of the demand for drugs. This provides an avenue for import substitution. Investment opportunities include:
- Specialist hospitals,
- Diagnostic and Trauma Centers,
- Ambulance Services,
- Mobile Clinics.
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. Some of the incentives granted by the government in the healthcare sector include:
- Pioneer Status;
- Tax Relief for Research and Development;
- In-Plant Training;
- Minimum Local Raw Material Utilisation;
- Investment Promotion and Protection Agreement (IPPA);
- Capital Allowance; and 7. Local Value Added.
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.