The Nigeria Sovereign Investment Authority (NSIA) has entered into a partnership with the International Finance Corporation (IFC), a World Bank Group member, to enhance oncology and diagnostic services provided to underrepresented communities across Nigeria.
This project aims to establish over twelve modern diagnostic and treatment centers across the nation, resulting in the creation of 800 direct job opportunities while also providing training for more than 500 healthcare professionals specializing in oncology and cardiology.
Valued at $154.1 million, the initiative includes a contribution of approximately $24.5 million from IFC, which translates to around N14.2 billion in long-term local currency financing. This arrangement signifies IFC's inaugural investment in Nigeria's healthcare sector utilizing this financial structure.
During the agreement signing event held in Abuja, Mr. Aminu Umar-Sadiq, Managing Director and Chief Executive of NSIA, remarked, "This collaboration with IFC marks a vital step in NSIA's ongoing commitment to bolster Nigeria's healthcare framework through sustainable, domestically-focused investment strategies."
Umar-Sadiq further stated, "By utilizing long-tenor naira financing, we are tackling critical infrastructure deficiencies while minimizing foreign exchange risks and ensuring the availability of quality diagnostic and cancer care for underserved populations."
He added, "The growth of MedServe corroborates our conviction that profitable healthcare investments can yield significant developmental benefits while addressing national health priorities."
Additionally, this agreement facilitates the provision of naira-based financing for NSIA Advanced Medical Services Limited (MedServe), which is a wholly owned subsidiary of NSIA. Backed by the International Development Association's Private Sector Window Local Currency Facility, this financing approach empowers MedServe to enhance crucial healthcare infrastructure while mitigating risks associated with foreign exchange fluctuations.
Expressing enthusiasm about the landmark partnership, Ethiopis Tafara, IFC Vice President for Africa, noted, "Nigeria's commitment to combat the increasing rates of non-communicable diseases presents a noteworthy opportunity to implement innovative financing methods capable of attracting private capital at scale, ensuring equitable access to quality healthcare."
"This ambition aligns with our overarching vision for Africa, where resilient health systems and inclusive growth reinforce each other, providing long-term impacts across the continent," he concluded.
In essence, the funds will be pivotal in supporting MedServe’s expansion projects, aimed at setting up diagnostic centers, cancer care facilities equipped with radiotherapy capabilities, and cardiac catheterization laboratories throughout various Nigerian states.
These centers are set to incorporate advanced medical technologies such as CT and MRI imaging equipment, digital pathology laboratories, linear accelerators, and cardiac catheterization systems, thus improving the provision of specialized diagnostic and treatment services.
MedServe aims to deliver sustainable service at prices adjusted according to local income levels, promoting wider access to affordable oncology treatment for economically disadvantaged patients. As Nigeria strives toward its Universal Health Coverage objectives, modernizing healthcare remains a priority. This partnership enables the use of private investment to supplement the government's efforts to broaden oncology and diagnostic services.
The IFC's provision of long-term naira financing seeks to bridge a critical market gap and unlock institutional investment for healthcare infrastructure, showcasing significant development potential. Its strategy of proximity to public hospitals optimizes capital efficiency and fortifies the public-private ecosystem, establishing a blueprint for future investments.
Moreover, the investment aligns with Nigeria’s Universal Health Coverage framework and the World Bank Group’s Country Partnership Strategy, supporting health sector investment initiatives and presidential agendas directed at unlocking the healthcare value chain, emphasizing the importance of attracting private healthcare investment while enhancing local capabilities.
Beyond investment capital, IFC is poised to provide advisory support aimed at enhancing MedServe’s operational capabilities, integrating global best practices in patient safety, improving access measures for lower-income demographics, and obtaining EDGE certification for sustainability in building standards.
This project is fully congruent with the Paris Agreement, with a significant share of the investment categorized as climate finance. Construction will proceed through 2026, with the first facilities anticipated to open in the latter half of that year.
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