PPP Projects in the Healthcare Sector

PPP Projects in the Healthcare Sector of Nigeria: Key Commercial Considerations

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PPP Projects in the Healthcare Sector in Nigeria is quite lacking as The Nigerian health sector is battling with poor infrastructure, poor equipment, poor funding and low staff capacity. For 2020, the Federal Government allocated just 4.14% (N427.3 billion) of the budget to healthcare, despite being a signatory to the Abuja Declaration since 2001, where countries pledged to allocate at least 15% of their annual budget to improve the health sector.

Currently, the regulatory mechanisms for health service delivery, quality assurance management and distribution of commodities such as drugs, vaccines, and equipment are largely ineffective. Services in public and private sectors frequently all below acceptable standards. In some cases, the lack of effective regulation is resulting in people receiving (and paying for) treatment of little or no therapeutic value; even worse, some are exposed to dangerous products and practices, and are thereby suffering harm.

Health care delivery in the public sector is currently highly bureaucratized, undermining effective delivery of services, professional ethos, job performance, and morale.

In the private sector, the cost of care is unaffordable to a large percentage of the people, and very high for those who could even afford such services. As a result, the populace is unsatisfied with services provided in both public and private facilities.

The introduction of PPP into Nigerian healthcare was made possible through the National Policy on Public-Private Partnership for Health adopted by the Federal Government in 2005. The policy was introduced as a reform to address the deplorable national health profile as evidenced by poor infant and maternal mortality rates, and low life expectancy.

In addition to the above, this White Paper prepared by the Brickstone Africa Team, in much more detail explains a Public-Private Partnership in Healthcare and why it typically arises. 

 

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