Healthcare costs to remain high on forex crisis, expert says

The cost of healthcare in Nigeria could remain high without an end to the crippling effect of the foreign exchange crisis on the economy, Abiola Olorode, former UNICEF health manager and chief executive of Diamed Centre has said.

She said the cost component of health provision in Nigeria is highly vulnerable to forex shocks, making it difficult for providers to reduce care costs.

Nigeria depends on imports to source drugs, healthcare equipment, machinery, kits, and devices, most of which costs have surged by almost 300 per cent since President Bola Tinubu unified the exchange rate and yanked off fuel subsidies.

“Until there is a solution to the forex issue, things will continue to be expensive. We haven’t even talked about electricity tariffs. We don’t make drugs. A lot of the components we use including spare parts are imported. The cost of reagents we use for diagnosis has increased. A lot of the contrast dyes you make for some of the imaging you do also increased,” Olorode said while unveiling her multi-specialist medical centre in Lekki.

She said this has made being sick very expensive and inaccessible for many Nigerians despite yearnings for good quality care.

While commending the government’s efforts to introduce excise and duty-free import regime for some medical imports, Olorode said it should also consider tax breaks for businesses investing in Nigeria’s healthcare.

According to her, the multiple taxes in Lagos state, for instance, pose a threat to health businesses, making the operating environment inconducive.

“From signboard taxation, to local government taxation, to state taxation and then to the almighty electricity tariff, the taxes are too much…it’s not easy. And that’s when we have to cut costs,” Olorode said.

“I believe the profit margin has reduced because there is a limit to how you can increase your prices. So that’s why we have to have ways of cutting costs. Some of us do it because we have passion and love. I mean, the headache in it is not so easy.”

Having worked over two decades with UNICEF to tackle critical gaps that compromise the quality of Nigerians’ lives, Olorode established the Diamed Centre to help Nigerians save costs through preventive care.

The objective is to offer evidence-based medical services, providing accurate diagnosis to promote early detection and improve patient health outcomes.

It has invested in high technologies such as magnetic resonance imaging, computed tomography scans, X-rays, mammograms, and echocardiograms to achieve its goals. The facility is also equipped with a state-of-the-art laboratory, dialysis unit, ophthalmology, dental suite, physiotherapy unit, and full theatre suites.

With efficient diagnosis and effective management of disease, Olorode believes the centre can play a significant role in reducing the negative indices around high mortality and morbidity rates.

The company plans to collaborate with other private health facilities and relevant public healthcare organisations to drive its goals.

The Diamed Centre also hopes to leverage telemedicine to improve the quality of its services.

“The first thing we started was to look at the radiology to ensure that all our machines and all our staff are well trained. They’ve had a series of training. After the first initial training, they had advanced training and they are still going to be trained,” Olorode said.