Embittered by the status of the government’s teaching hospitals, a member of the House of Representatives proposed privatising the tertiary health institutions to spark efficiency. Though medical parastatals opposed the suggestion, the lawmaker might be hinting at a long-term solution to the frailing teaching hospitals, if the country is committed to quality healthcare.
For several years, Nigeria’s government-owned teaching hospitals have been struggling with poor management and substandard medical facilities. A 2023 Statista index of best healthcare system ranked Nigeria 157th out of 167 countries globally, revealing inadequacies such as poor welfare for patients. This tells us one thing: it is time to consider a radical solution in the health sector. More privatisation.
Not just tertiary institutions, Nigeria’s healthcare sector is a shadow of itself, and one reason is underfunding. The country’s public health service is financed through the National Insurance Scheme with only 3.7 percent of the nation’s GDP spent on healthcare. This contradicts the United Nations International Children’s Emergency Fund’s recommendation of at least a 5 per cent GDP commitment.
According to the International Trade Administration, insufficient funds contribute to the unavailability of modern medical facilities in government-managed hospitals.
In Northern Nigeria’s Nassarawa State, over 59 doctors resigned between January and March because of poor working conditions, as reported by Arewa Punch. Many doctors are leaving due to the terrible state of infrastructure and overall work environment.
Taking care of healthcare workers is crucial for delivering quality care to patients. When doctors and nurses are forced to work in poor conditions, it not only affects their well-being but also the quality of care patients receive. There have been tragic cases of staff members dying on duty or patients’ conditions worsened because of the challenging work environment in public hospitals.
Problems like this are connected to poor management, most times resulting from bureaucratic delays. Several times, bureaucracy in government-owned teaching hospitals has resulted in the death of many patients who could have been saved. For instance, two years ago, administrative delay in attending to hospital needs cost the lives of two journalists at IBB Specialist Hospital in Minna, Niger State.
The problem of bureaucracy is compounded by the irregularity of maintaining medical essentials like power supply, ward rooms, and basic medical equipment, thus threatening the patients’ well-being.
In a 2023 report of the 10 fastest-growing sectors in Nigeria, a critical sector like healthcare is nowhere to be found. According to a 2024 healthcare index by countries in Africa, South Africa tops as Africa’s best healthcare provider, and their health sector is largely characterised by private-public ownership. If the southern African country leads in the best-performing healthcare sector in Africa with its private-public ownership structure, Nigeria has a beautiful lesson to learn. Privatisation.
Competition Leads to Innovation
An average Nigerian’s concern over privatisation is the fear of expensive healthcare. While transferring the management of teaching hospitals to private individuals or corporations might end existing government subsidies, competition and innovation would soon drive down hospital bills and make healthcare more affordable.
Nigeria has a good precedent in the telecommunications sector, privatised over three decades ago and currently among the five top-performing sectors in 2024 in the Gross Domestic Product first quarter report. From all indications, the commercialisation of the telecommunications sector bolstered efficiency, making communication seamless and accessible to over 200 million Nigerians.
Private ownership extends beyond investment in adequate facilities. Innovative trends such as telemedicine, the practice of using telecommunications technology to provide medical services remotely, provide affordable health services to Nigerians. According to a report, patients can secure consultation with a doctor for as low as N500, signalling the potential for healthcare affordability with privatisation.
The fast-growing competition in other sectors like telecommunication, fintech and trade shows a high level of investment and commitment exhibited by private entities. For instance, MTN, Nigeria’s biggest mobile operator, has invested over $15 billion in its expansion and infrastructure since its advent in Nigeria in 2001. Likewise, Globacom, a Nigerian-owned company, has invested approximately $3.5 billion in telecommunications. Privatisation or private-public partnership in the operation of the teaching hospitals would pool more funds, the much-needed investment to enhance the quality of the hospital’s services and infrastructures.
