Translate To All Languages

Financing the Health Sector in Nigeria through Private Sector Participation – A Capital Market Option

According to a World Health Organization (WHO) report titled, ’Strengthening the capacity of governments to constructively engage the private sector

 



According to a World Health Organization (WHO) report titled, ’Strengthening the capacity of governments to constructively engage the private sector in providing essential healthcare services’ most countries health-care delivery involves a combination of public provision as well as a range of entrepreneurial initiatives, usually referred to as private sector or private provision.  


This Private provision is a substantial and growing sector that is capturing an increasing share of the healthcare market across the world as it is becoming increasingly difficult for governments to continue to adequately finance the sector.


Recognizing the importance and the sizeable financial requirements of the sector, the Heads of State of African Union countries in April 2001 met in Abuja, Nigeria and in a resolution known as the ‘Abuja Declaration’, pledged to set a target of allocating at least 15% of their annual budget to improve the health sector.


In Nigeria, the increase of the health budget to ₦440 billion in 2020 is the highest in five years, but it amounts to over 4.5% of the total government budget for the year falling short from the 15% agreed in the Abuja declaration.  The country’s health sector has an annual deficit running into almost US$10 billion (₦3.86 trillion) in health infrastructure gap and the annual budget for health sector at both the Federal and States level is not sufficient to cater for the growing infrastructural needs of the health sector.


According to BudgiT, a civic organization tracking government spending, a sizeable amount of the health budget is spent on recurrent expenditure and an insufficient amount is allocated towards capital projects.



With the dwindling oil price, which accounts for over 70% of government’s revenue, it is becoming more apparent that there is a need for deliberate private sector participation in financing the infrastructure deficit of the health sector.


This deficit comes with its own implications as it increases outbound medical tourism as some citizens opt for medical treatment overseas. Consequences of this include the country incurring an economic loss of about $1 billion annually, a weaker health system in Nigeria and indirect capital support of the healthcare industry in destination countries.


With the COVID-19 pandemic, healthcare systems of both the developed and developing world has seen unprecedented stress with healthcare demand outstripping availability and supply.  Based on that, many countries around the world decided to shut their borders and according to a World Trade Organization report in April 2020, 80 countries and customs territories have banned or limited the export of face masks, protective gear, gloves and other medical equipment to mitigate shortages since the outbreak of Coronavirus.  Confronted with the travel restrictions and limited importation of medical essentials, more concern should be given to the country’s own healthcare facilities.


Given the level of healthcare needed for a teeming population of over 200 million people, infrastructure deficit and the financing gap of ₦3.8 trillion (https://www.icrc.gov.ng/health-sector-fg-battles-10bn-annual-infrastructure-deficit/), it is the right time for Federal and State Governments to seek increased private sector participation in that sector and especially via the capital market.  Private sector participation/financing in the health sector has the potential of transforming healthcare from a social service to a business gaining some value addition and efficiency.


With the potential investment opportunities in healthcare for the private sector, Governments at all levels should consider concession of government owned health facilities and hospitals and allow for private sector driven provision of health services.  A simple model that could be considered for the flow of needed financing from the capital market to ensure the establishment of world-class hospitals and diagnostic centers in Nigeria is described below.



Financing structure must be evaluated with input from knowledgeable Financial Advisers because of the criticality of the sector and in view of the long-term strategic plans of the government. Such plans might include changing the health sector from its social infrastructure to one with a commercial outlook.


Using this model, Governments can bridge the infrastructural gap in the Health sector through Hospital concessions to enable them execute more health projects within their domain with strong payment security mechanisms. The concessionaires are expected to take up management of the Hospitals and drive adequate value and economic returns to the state.  This implies that the private entity or consortium is the project developer.  The Private entity will create a Special Purpose Vehicle (SPV) which will limit the Governments financial risk exposure.  Equity capital or Long term Bonds will be issued by the SPV, then grouped into tranches and sold to meet the credit risk preferences of a wide range of investors.  Greater private sector participation could also help resolve some of the inadequacies of the public health system, relieve healthcare funding pressures and also enhance healthcare related revenues to government.


A typical example where the capital market financing was explored to promote access to infrastructure development is in the United States of America, where Congress created the Build America Bonds (BABs) as part of the 2009 American Recovery and Reinvestment Act (ARRA).  With the introduction of BABs, rated governmental hospital borrowers, such as City & County hospitals, hospital districts, and other governmental entities that own health care facilities may issue bonds to acquire or construct needed facilities.  The BABs also had the added advantage of being tradeable in the capital market.


With world-class healthcare hospital and diagnostic centers, we hope to see a reversal of direction of medical tourism in Nigeria from outbound to inbound. The change in direction to inbound medical tourism would save the country over $1billion annually reflective of the amount being spent on outbound medical tourism (According to a Price Waterhouse Coopers 2016 report, Nigerians spend $1bn annually on medical tourism) and consequently, encourage foreign currency inflows to the nation’s reserve.  Other benefits derivable from the change in direction would include but not limited to reduced brain drain, as the Nigeria’s trained doctors have in recent times sought opportunities in other countries due to a number of reasons including poor healthcare infrastructure and low wages.


Given the level of needed infrastructure, the ongoing pandemic and the significant funding requirements, this presents as the right time for the government to consider capital market funding as an opportunity for private sector participation in funding the health sector of the country. 


The Nigerian Stock Exchange (NSE), as a multi-asset exchange hub provides a platform for accessing long-term capital for infrastructure development and continues to support Governments across all levels in unlocking significant value through; private sector participation in infrastructure financing through equity, debt and other asset classes.

COMMENTS

RECENT WITH THUMBS$type=blogging$m=0$cate=0$sn=0$rm=0$c=4$va=0

Local News Entertainment Celebrities music Politics Ghana Africa Entertainment News World-Entertainment Ghana music news Videos Election 2020 NPP Crime Musicians Presidential Latest News In Ghana Africa News NDC Breaking News Sports Education Volta Region Breaking Africa Relationship Finance General News featured news GH MUSIC Parliamentary Video Breaking World-Sports Latest music Music Video Business Nigerian Music Nigeria World News Ewe Ghana Sports News 18+ Health www.EweGhana.Net Slay Queen Results Trending EweGhana World-Politics Government World-Business Police Ladies Advert Dancehall Shatta Wale Music and Video Football EweGhana.Net Ashanti Region Covid19 Foreign News School Biography Church Culture Accident Events Religious Press Release News In French Gospel Music International Rock Venus lifestyle Awards Election History Sarkodie Stonebwoy Technology showbizz Shows Social Food Kwabena Yeboah Soccer Akufo Addo Artiste Profile Coronavirus Porn Accra Animals Games Sex mixtape #Fixthecountry Music Lyrics NPP NEWS Media Artists Profile Kenya Nigeria Videos Bible Fashion Security Showbiz Birthday Life Others Performing Video Bloggers Job Pastor Science Akuapem Poloo Artist DJs Mixtape FM Program Germany Interview Market Multimedia Photos Tourism Corona Virus Coronavirus News Dj china ghana Gosple India Actress Ashanti Beauty Talk Fucking Khemikhals MP Speak Your Mind Movement Tema Uganda Advice Court Curvy FM Stations Gun Instrumentals Italian Music Mali Marriage Radio Station Program Togo Blakabill Festivals Journalism Life Inspiration Medikal Philohope South Africa Trending News Tv3 Actor Arsenal Burkina Faso Cameroon Central Africa Chad Dance Video Date Rush Death Destie HIPLIFE Jamaica Malaria Minister Of Health Nana Agradaa Princess Of Principle Republic Of The Congo Sierra Leone Tanzania USA West Africa Adult Banks Benin Edem Event France Hip hop Instrumental Jobs Mozambique Russia Senegal Thac Nation Trees Tunisia Weapon World-Music Afia Odo Athletes Australia British China Christians Egypt Environment GHANA NEWS HEADLINES Galamsey Gold Gold Cassy Reigns Haircut Hairstyle IGP Inspiring Our Culture Leaks Manchester United Money National Other Parties Reggae Rhino Robbers Sierra Leone Music Social news South Sudan Tokyo Upcoming Vaccine World Health Organization kuami Eugene Afri America Anoda Level Articles Bono Region Comedy Crises D Black Digital Marketing Ethiopia Film Ghana Music Lyrics Gyakie Hotel Light It Up Records Morocco Mr. Loyalty Peeshaar Dhiss Pregnancy President Joe Biden Sakabo Strongman Technician Tribes Water Yaa Pono fire outbreaks opinion AFRICA NEWS HEADLINES AirtelTtigo Ama Nova Army Art Barcelona Belgium Benin Music Berlin Bet Big Boiz Burna Boy COVID-19 Cowbell Cup Davido Destiny Etiko Dubai ECOWAS Eastern Region Ebola Efia Odo Efya El Kassy Electoral Commission Europa League Europe Finland Fraud French German Shepherd Grammy Award Guchi Hair Growth Hospital Hygiene Iran Jaman Kwabena Japan Jennifer Joe Main Johannesburg John Dumelo Kasapa Kasoa Kennedy Agyapong Kidi King Godzy Kofi Kinaata Kumasi Kumawood Kwaw Kese Ladis Lawyer Ntim Liberia Lyrics Video Malawi Mavado Maxbriyann Miami Michelle Obama Model Motivation Motorbikes Motorway MzVee NASA Nanky Nigeria Nig Nollywood Official Olympic Pakistan Paralympian Plants Port Poverty Prosecutor Queen Of Africa Ras Rex Omar Richest Rwanda Secu Shugatiti Somalia Suez Canal Sunyani Sweden Taiwan Tamale Teni Thailand The Trigger Vibes Tokyo Olympic Games Train Tubrizzy Turkey UK UN United States Vacc Vybz Kartel WHO Youth Zambia Zimbabwe beaches Akrobeto Akwaboah Album Amerado Anthony B Ay Poyoo Banger Alert Bisa Kdei Body Builders Boxer Brazil Bus Cannot Lose Carboni Central Region Culture Festivals Divorce Dj Profile Doctor Drip Yesu EP Eastern Region Ebony Efua Kueen Enam – Talk To Your Boyfriend (Feat Sister Deborah X T’neeya) England Eno Be Muf Faction Designs Fameye Fancy Gadam Fava Gee Gallaxy Gospel Hair Style Hajia Bintu Ike Millions Italy Jamz Album Jokes Kahpun Kanye West Kelvynboy Ken Rhapz King Godzy Gh King Promise Kofi mole Kwame Yogot Kwesi Arthur Larruso Legon Libyan Living Dove Chapel Love Massage Mharidiva Northern Region Nurse Okyeame Kwame Old News Pappy Kojo Penis Ph Media Africa Portugal Prison Products Prostitute Rape Ras Kuuku Rastafarian Reggie Rockstone Rema Rent Romania Samini Selena Gomez Selina Boateng Shoprite Show Sista Afia Sister Derby Snakes Stonedeegh Sudan Table Tennis Tattoo ThanksGiving Tommy Lee Spartan Tony West Top 50 Best Indian Film Actresses VehementlyBwoy Wizkid Yvonne Nelson ent l officials series
Name

#Fixthecountry,17,18+,69,Accident,33,Accra,19,Actor,6,Actress,9,Adult,5,Advert,50,Advice,8,Afia Odo,4,Afri,3,Africa,547,Africa News,193,AFRICA NEWS HEADLINES,2,AirtelTtigo,2,Akrobeto,1,Akuapem Poloo,11,Akufo Addo,21,Akwaboah,1,Album,1,Ama Nova,2,Amerado,1,America,3,Animals,18,Anoda Level,3,Anthony B,1,Army,2,Arsenal,6,Art,2,Articles,3,Artist,11,Artiste Profile,21,Artists Profile,15,Ashanti,9,Ashanti Region,40,Athletes,4,Australia,4,Awards,27,Ay Poyoo,1,Banger Alert,1,Banks,5,Barcelona,2,beaches,2,Beauty Talk,9,Belgium,2,Benin,5,Benin Music,2,Berlin,2,Bet,2,Bible,14,Big Boiz,2,Biography,35,Birthday,13,Bisa Kdei,1,Blakabill,7,Bloggers,12,Body Builders,1,Bono Region,3,Boxer,1,Brazil,1,Breaking,101,Breaking Africa,127,Breaking News,159,British,4,Burkina Faso,6,Burna Boy,2,Bus,1,Business,85,Cameroon,6,Cannot Lose,1,Carboni,1,Celebrities,911,Central Africa,6,Central Region,1,Chad,6,China,4,Christians,4,Church,34,Comedy,3,Corona Virus,10,Coronavirus,21,Coronavirus News,10,Court,8,COVID-19,2,Covid19,39,Cowbell,2,Crime,239,Crises,3,Culture,34,Culture Festivals,1,Cup,2,Curvy,8,D Black,3,Dance Video,6,Dancehall,50,Date Rush,6,Davido,2,Death,6,Destie,6,Destiny Etiko,2,Digital Marketing,3,Divorce,1,Dj china ghana,10,Dj Profile,1,DJs Mixtape,11,Doctor,1,Drip Yesu,1,Dubai,2,Eastern Region,1,Eastern Region,2,Ebola,2,Ebony,1,ECOWAS,2,Edem,5,Education,132,Efia Odo,2,Efua Kueen,1,Efya,2,Egypt,4,El Kassy,2,Election,27,Election 2020,270,Electoral Commission,2,Enam – Talk To Your Boyfriend (Feat Sister Deborah X T’neeya),1,England,1,Eno Be Muf,1,ent,1,Entertainment,1073,Entertainment News,523,Environment,4,EP,1,Ethiopia,3,Europa League,2,Europe,2,Event,5,Events,33,Ewe Ghana,72,EweGhana,60,EweGhana.Net,42,Faction Designs,1,Fameye,1,Fancy Gadam,1,Fashion,14,Fava Gee,1,featured news,115,Festivals,7,Film,3,Finance,119,Finland,2,fire outbreaks,3,FM Program,11,FM Stations,8,Food,23,Football,46,Foreign News,39,France,5,Fraud,2,French,2,Fucking,9,Galamsey,4,Gallaxy,1,Games,18,General News,115,German Shepherd,2,Germany,11,GH MUSIC,107,Ghana,611,Ghana music,431,Ghana Music Lyrics,3,GHANA NEWS HEADLINES,4,Gold,4,Gold Cassy Reigns,4,Gospel,1,Gospel Music,30,Gosple,10,Government,56,Grammy Award,2,Guchi,2,Gun,8,Gyakie,3,Hair Growth,2,Hair Style,1,Haircut,4,Hairstyle,4,Hajia Bintu,1,Health,69,Hip hop,5,HIPLIFE,6,History,26,Hospital,2,Hotel,3,Hygiene,2,IGP,4,Ike Millions,1,India,10,Inspiring Our Culture,4,Instrumental,5,Instrumentals,8,International,29,Interview,11,Iran,2,Italian Music,8,Italy,1,Jamaica,6,Jaman Kwabena,2,Jamz Album,1,Japan,2,Jennifer,2,Job,12,Jobs,5,Joe Main,2,Johannesburg,2,John Dumelo,2,Jokes,1,Journalism,7,Kahpun,1,Kanye West,1,Kasapa,2,Kasoa,2,Kelvynboy,1,Ken Rhapz,1,Kennedy Agyapong,2,Kenya,15,Khemikhals,9,Kidi,2,King Godzy,2,King Godzy Gh,1,King Promise,1,Kofi Kinaata,2,Kofi mole,1,kuami Eugene,4,Kumasi,2,Kumawood,2,Kwabena Yeboah,23,Kwame Yogot,1,Kwaw Kese,2,Kwesi Arthur,1,l,1,Ladies,51,Ladis,2,Larruso,1,Latest music,88,Latest News In Ghana,200,Lawyer Ntim,2,Leaks,4,Legon,1,Liberia,2,Libyan,1,Life,13,Life Inspiration,7,lifestyle,29,Light It Up Records,3,Living Dove Chapel,1,Local News,1299,Love,1,Lyrics Video,2,Malaria,6,Malawi,2,Mali,8,Manchester United,4,Market,11,Marriage,8,Massage,1,Mavado,2,Maxbriyann,2,Media,16,Medikal,7,Mharidiva,1,Miami,2,Michelle Obama,2,Minister Of Health,6,mixtape,18,Model,2,Money,4,Morocco,3,Motivation,2,Motorbikes,2,Motorway,2,Mozambique,5,MP,9,Mr. Loyalty,3,Multimedia,11,music,906,Music and Video,47,Music Lyrics,17,Music Video,88,Musicians,219,MzVee,2,Nana Agradaa,6,Nanky,2,NASA,2,National,4,NDC,167,news,419,News In French,31,Nigeria,76,Nigeria Nig,2,Nigeria Videos,15,Nigerian Music,83,Nollywood,2,Northern Region,1,NPP,256,NPP NEWS,17,Nurse,1,Official,2,officials,1,Okyeame Kwame,1,Old News,1,Olympic,2,opinion,3,Other Parties,4,Others,13,Pakistan,2,Pappy Kojo,1,Paralympian,2,Parliamentary,107,Pastor,12,Peeshaar Dhiss,3,Penis,1,Performing Video,13,Ph Media Africa,1,Philohope,7,Photos,11,Plants,2,Police,52,Politics,740,Porn,20,Port,2,Portugal,1,Poverty,2,Pregnancy,3,President Joe Biden,3,Presidential,217,Press Release,32,Princess Of Principle,6,Prison,1,Products,1,Prosecutor,2,Prostitute,1,Queen Of Africa,2,Radio Station Program,8,Rape,1,Ras,2,Ras Kuuku,1,Rastafarian,1,Reggae,4,Reggie Rockstone,1,Relationship,121,Religious,33,Rema,1,Rent,1,Republic Of The Congo,6,Results,62,Rex Omar,2,Rhino,4,Richest,2,Robbers,4,Rock Venus,29,Romania,1,Russia,5,Rwanda,2,Sakabo,3,Samini,1,Sarkodie,25,School,36,Science,12,Secu,2,Security,14,Selena Gomez,1,Selina Boateng,1,Senegal,5,series,1,Sex,18,Shatta Wale,49,Shoprite,1,Show,1,Showbiz,14,showbizz,25,Shows,24,Shugatiti,2,Sierra Leone,6,Sierra Leone Music,4,Sista Afia,1,Sister Derby,1,Slay Queen,65,Snakes,1,Soccer,23,Social,24,Social news,4,Somalia,2,South Africa,7,South Sudan,4,Speak Your Mind Movement,9,Sports,145,Sports News,70,Stonebwoy,25,Stonedeegh,1,Strongman,3,Sudan,1,Suez Canal,2,Sunyani,2,Sweden,2,Table Tennis,1,Taiwan,2,Tamale,2,Tanzania,6,Tattoo,1,Technician,3,Technology,25,Tema,9,Teni,2,Thac Nation,5,Thailand,2,ThanksGiving,1,The Trigger Vibes,2,Togo,8,Tokyo,4,Tokyo Olympic Games,2,Tommy Lee Spartan,1,Tony West,1,Top 50 Best Indian Film Actresses,1,Tourism,11,Train,2,Trees,5,Trending,61,Trending News,7,Tribes,3,Tubrizzy,2,Tunisia,5,Turkey,2,Tv3,7,Uganda,9,UK,2,UN,2,United States,2,Upcoming,4,USA,6,Vacc,2,Vaccine,4,VehementlyBwoy,1,Video,105,Videos,377,Volta Region,129,Vybz Kartel,2,Water,3,Weapon,5,West Africa,6,WHO,2,Wizkid,1,World Health Organization,4,World News,76,World-Business,54,World-Entertainment,479,World-Music,5,World-Politics,57,World-Sports,98,www.EweGhana.Net,66,Yaa Pono,3,Youth,2,Yvonne Nelson,1,Zambia,2,Zimbabwe,2,
ltr
item
EweGhana.Net Inspiring Our Culture: Financing the Health Sector in Nigeria through Private Sector Participation – A Capital Market Option
Financing the Health Sector in Nigeria through Private Sector Participation – A Capital Market Option
According to a World Health Organization (WHO) report titled, ’Strengthening the capacity of governments to constructively engage the private sector
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_Rok8wbijQMUxGnmnigoIR6e5CYC3xzAIKkD1ZSIOE253yfTVftWM6HChy7t9ZWqCjNfwTOqGxk8NHVsIQM_r4nXzyA94C2-h3rJQOShzFLL9vKEhXb9iY8Sa4iCJ2NdB_QKUIUw1zjI/s16000/1__ozpbLs4W6LEBy0N-Ek5dw-e1606304407429.jpeg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg_Rok8wbijQMUxGnmnigoIR6e5CYC3xzAIKkD1ZSIOE253yfTVftWM6HChy7t9ZWqCjNfwTOqGxk8NHVsIQM_r4nXzyA94C2-h3rJQOShzFLL9vKEhXb9iY8Sa4iCJ2NdB_QKUIUw1zjI/s72-c/1__ozpbLs4W6LEBy0N-Ek5dw-e1606304407429.jpeg
EweGhana.Net Inspiring Our Culture
https://www.eweghana.net/2020/11/financing-health-sector-in-nigeria.html
https://www.eweghana.net/
https://www.eweghana.net/
https://www.eweghana.net/2020/11/financing-health-sector-in-nigeria.html
true
3390848294410594855
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content