Chijioke Iremeka
As part of efforts to improve funding for the health sector, healthcare providers are advocating for the establishment of a national health bank to improve access to modern medical equipment.
The proposed health bank, they said, would serve as a dedicated financial institution that would be managed by a separate body and not the Federal Ministry of Health to address the chronic funding gaps that had long plagued healthcare systems in the country.
The medical practitioners said the health bank just like the Bank of Industry seeks to support infrastructure development in the sector, purchase advanced medical equipment, and fund research and training programmes.
Recall that in 2021, the Nigeria Medical Association had called on the Federal Government to establish a national health bank that would provide single-digit interest loans to the private health sector for the establishment of world-class health facilities in the country.
The former President of the association, Prof Innocent Ujah, said the establishment of the health bank would reduce the spate of medical tourism and increase the Internally Generated Revenue of the country.
According to him, healthcare is expensive, but the health bank would enable the private sector to get money at a reduced interest rate to provide more world-class healthcare facilities in the country.
Speaking exclusively with PUNCH Healthwise in different interviews, the healthcare providers noted that the health bank, when established, would provide a predictable and sustainable source of funding for critical health projects, ensuring funds were tied to specific results and milestones aligned with national health policies and goals.
According to them, the bank could offer loans and grants to healthcare facilities, support innovative health projects, and facilitate public-private partnerships, promising to enhance the quality and accessibility of healthcare services, particularly in underserved regions.
Dr. Babatunde Rosiji
The Medical Director at the State Specialist Hospital, Ikole, Ekiti State, Dr Babatunde Rosiji, said that NMA had been advocating for the creation of a health bank for several years to boost the development of the healthcare sector.
Rosiji said that this initiative was targeted at establishing a dedicated financial institution similar to the Bank of Industry, which provides low-interest loans to stimulate industrial production.
The NMA Chairman of the South West chapter lamented that despite significant efforts made so far, the proposed health bank had yet to materialise.
He said, “Such an institution is essential for supporting private hospitals and healthcare facilities that supplement the country’s strained public healthcare system. With Nigeria’s population exceeding 200 million, the Federal Government’s facilities alone cannot meet the healthcare needs of all citizens.
“A health bank will provide the necessary financial support to these private entities, ensuring they can continue to offer crucial services. The current realities such as the need for self-generated power and fuel, compound the challenges faced by healthcare providers.
“Addressing these issues through a health bank would help alleviate some of the financial burdens and enhance the overall healthcare delivery system in Nigeria. Many hospitals in Nigeria are facing closure due to the harsh economic environment, which exacerbates broader economic issues.
“When healthcare facilities shut down, it affects not just the immediate staff but also contributes to worsening poverty levels as these workers lose their income. The closure of these facilities can also impact the local economy, leading to a reduction in access to healthcare services.”
He noted that the concept of a health bank is a crucial step forward, saying that just as the Bank of Industry and Bank of Agriculture provide low-interest loans to boost industrial and agricultural sectors, a health bank would offer similar support to the healthcare sector.
This, he said, would be particularly beneficial for both existing private hospitals and new startups.
Rosiji emphasised that countries like Turkey and those in the Apollo network have thriving healthcare sectors partly because their governments provided structured financial support, including low-interest loans.
Continuing, he said, “While some might argue that private hospitals are profit-driven, this is comparable to how the Bank of Agriculture and Industry supports profit-oriented businesses. However, healthcare is fundamentally a social service, and supporting private practitioners is essential to ensure they can provide quality care without financial strain.
“A health bank could help bridge this gap, fostering development in the healthcare sector and ensuring that private facilities can continue to serve the masses effectively. Guaranteeing the establishment of a health bank is essential for ensuring qualitative access to healthcare. I fully support this initiative, which is long overdue.”
On how the bank would be run, he said, “The operational management of the health bank should be handled by a distinct, independent body rather than being directly overseen by the Ministry of Health.
“Direct control by the ministry could introduce the usual bureaucratic delays that have hindered similar initiatives in the past. Instead, a separate, dedicated organisation should be established, akin to the various bodies within the Bank of Industry.
“This new body should include representatives from professional associations, private practitioners, experts in health financing, and other relevant stakeholders. Their combined expertise would be crucial in developing an effective framework for the health bank. This structure would ensure that the bank operates efficiently, with a focus on addressing the specific needs of the healthcare sector.”
On the funding, he said, “While individual contributions and funding are valuable, the formation of a specialised body to oversee the health bank’s operations would provide the necessary expertise and oversight. This approach would help in creating a sustainable and impactful financial institution dedicated to advancing healthcare in Nigeria.
“The proposed health bank should adopt a basket funding approach, drawing from a variety of funding sources. To effectively launch this initiative, it is crucial to first define a clear mission statement and determine the necessary capitalisation.
“Once these foundational elements are established, we can identify and secure diverse funding sources, including government allocations, private investments, and philanthropic contributions. Philanthropy plays a significant role in this context.
“While the culture of giving is less established in Nigeria compared to other regions, it is essential to engage philanthropists to support this critical initiative. Many international foundations have successfully funded similar projects abroad for years, demonstrating the potential impact of such support.”
He noted that the establishment of a health bank was vital for reducing healthcare costs, improving the quality of services, especially within the private sector, and addressing issues like quackery.
“By setting high standards and providing accessible funding for legitimate healthcare practices, the health bank can drive improvements in the sector. Over time, this would naturally lead to a reduction in substandard practices, as only those adhering to high standards would thrive under this new framework,” he added.
Dr Lolu Ojo
Corroborating his statement, a Consultant Pharmacist and the Managing Director, Merit Healthcare Limited, Dr Lolu Ojo, who welcomed the idea of a health bank, said that he was for anything that would be done to better the healthcare sector in Nigeria.
Ojo said, “Anything that can be done to make the industry more dynamic and robust in business, cost of healthcare reduced, and life easier for Nigerians will be okay.”
A former Chairman of the Association of Industrial Pharmacists of Nigeria said that “the bank should and has to be managed by astute professionals devoid of government interference. By this, I mean a separate, independent, and business-driven body.
“The funding could come from various sources, possibly Public Private Partnerships. Nothing will work if the current high Naira to the foreign exchange rate is not addressed.”
Also, Lead Director, Centre for Social Justice, a civil society organisation, Eze Onyekpere, made a similar call during a workshop titled: “Innovative and Alternative Funding of the Health Sector,” which received support from the United States Agency for International Development under the project.
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