The weak state of the health sector in Nigeria, amid growing demand for quality healthcare, provides profitable opportunities. While government policy will continue to affect the broader sector in the medium term, especially in catering to the vulnerable mostly in rural Nigeria, companies investing in niche segments focusing on the middle class with relatively higher healthcare spending would find value.
Health care costs are large and increasing given weak income levels, hence financing this is difficult. This makes the health insurance segment an attractive space, more so that penetration is currently weak. As, HMOs have proliferated due to rising awareness and labour laws which mandates medical insurance, a continuation of this trend will support growth in this segment.