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Lagos moves to reverse $2b medical tourism losses
Lagos State Government has intensified efforts to reverse Nigeria’s multi-billion-dollar medical tourism outflow and position Lagos as a regional healthcare destination, as infrastructure upgrades, specialist training and private sector partnerships begin to reshape the state’s health system.
Immediate past Permanent Secretary, Lagos State Ministry of Health, Segun Ogboye, said the state had spent the last six to eight years implementing reforms aimed at reducing outbound medical travel while attracting patients from other African countries.
Speaking during the Nigeria-South Africa Chamber of Commerce (NSACC) Breakfast Forum, on the topic Global Care, Local Confidence: ‘Positioning Nigeria in the Medical Tourism Value Chain’, in Lagos, Ogboye described healthcare as a major global business, noting that Nigeria loses billions of dollars annually to foreign hospitals due to weak infrastructure, skills gaps and lack of public confidence in local facilities.
According to him, global health tourism is valued at about $8.2 billion, with Nigeria accounting for a significant share of outbound spending, largely from Lagos and Abuja.
He said estimates show Nigerians spent between $1.2 billion and $2 billion annually on overseas treatment between 2020 and 2022, with figures fluctuating in recent years due to foreign exchange constraints and changes in payment channels.
“Health is a huge business. Unfortunately, healthcare providers focus on saving lives, but the financial value in the sector is enormous, and much of it leaves the country through medical tourism,” he said.
Ogboye explained that Lagos adopted a deliberate policy to reverse medical tourism by strengthening health infrastructure, expanding specialist care and encouraging public-private partnerships.
Projects underway include the development of new specialist hospitals, executive medical facilities and diagnostic centres designed to meet international standards.
Among them is the new Massey Children’s Hospital, described as one of the most advanced pediatric facilities in sub-Saharan Africa, as well as the upgrading of the Lagos State University Teaching Hospital to provide executive health screening and high-end specialist care.
He said the state also concessioned the development of the Medipark medical complex to private investors to accelerate the creation of a modern healthcare cluster capable of attracting foreign patients.
Despite the investments, Ogboye said Nigeria’s health sector still faces major structural challenges, including shortage of specialists, high cost of medical equipment and the migration of doctors and nurses abroad.
He noted that many government-sponsored specialists fail to return after overseas training, weakening the country’s capacity to deliver complex procedures locally.
“We trained many doctors abroad, but only a few returned. Without skilled manpower, even the best hospitals become museums,” he said.
He added that expensive equipment maintenance and lack of biomedical engineers also limit the ability of hospitals to sustain advanced services.
Ogboye stressed that expanding health insurance coverage is critical to building a viable healthcare economy, noting that Nigeria still records about 70 percent out-of-pocket spending, one of the highest globally.
He said Lagos has made health insurance mandatory, but enrollment remains low, limiting investment in hospitals.
Digitisation of medical records, stronger regulation of private hospitals and improved emergency care systems are also part of the reforms aimed at restoring public trust.
He identified India, the United Kingdom, the United States, South Africa and Turkey as top destinations for Nigerians seeking treatment abroad, driven by perceived quality, faster service and better facilities.
However, he said Lagos could compete globally if current reforms are sustained.
“If we complete the infrastructure, retain our health workers and improve regulation, Lagos can become a medical tourism hub not just for Nigeria, but for West Africa,” he said.
Ogboye, a public health expert with over two decades in civil service, played key roles in Lagos’ HIV/AIDS programme, COVID-19 response and health sector reforms before retiring from the ministry.
He currently consults on health systems development and hospital management.
Chairman of the Nigeria-South Africa Chamber of Commerce, Ije Jidenma, agreed that Nigeria has reached a critical turning point in its healthcare development and must urgently reposition itself within the global medical tourism value chain to stop capital flight and unlock billions of dollars in investment opportunities,
Jidenma said healthcare delivery has evolved into one of the fastest-growing sectors in the global economy, with medical tourism alone accounting for billions of dollars annually as countries compete to attract patients seeking quality and affordable treatment.
She noted that Nigeria has historically remained a source market for outbound medical tourism, with thousands of citizens travelling abroad every year for specialised procedures, leading to significant capital flight.
According to her, Nigeria loses between $1 billion and $2 billion annually to overseas medical treatment, driven by demand for advanced care in oncology, cardiology, kidney transplants and other specialised procedures.
“The key question before us is how Nigeria can move from being primarily a source market to becoming a destination within the global medical tourism value chain,” she said.
Jidenma observed that recent foreign exchange constraints have reduced overseas medical spending, forcing more Nigerians to seek treatment locally, a development he described as an opportunity to strengthen domestic healthcare capacity.
He said available data shows medical tourism spending dropped sharply in the first half of 2025 compared to the previous year, partly due to forex shortages but also because more advanced procedures are now being performed within Nigeria.
“Necessity is the mother of invention. Because foreign exchange has become difficult, we are seeing more procedures done locally, and that is helping to build domestic capacity,” she said.
Despite the emerging progress, Jidenma identified major structural challenges limiting Nigeria’s ability to compete globally, including underfunding of the health sector, shortage of equipment, low insurance penetration, brain drain among medical professionals and weak regulation.
He also cited frequent strikes, high out-of-pocket spending and poor standardisation of healthcare services as factors pushing Nigerians to seek treatment abroad.
According to him, building local confidence in the health system is critical to reversing the trend.
“Confidence fuels demand, demand attracts investment, and investment drives excellence. Without local confidence, medical tourism cannot grow,” she said.
Jidenma called for stronger collaboration between Nigeria and South Africa to develop joint healthcare investments, training programmes and cross-border hospital partnerships that could position both countries as leaders in Africa’s medical tourism market.
He said South Africa has developed strong expertise in hospital management, specialist care and medical standards, which Nigeria could leverage through structured partnerships.
“Africa can retain its healthcare spending within the continent if we collaborate effectively through joint ventures, knowledge exchange and cross-border investments,” she said.
He urged government and private investors to prioritise public-private partnerships, specialist hospitals, improved insurance coverage and diaspora engagement to accelerate sector growth.
Jidenma also proposed the creation of regional medical hubs, medical visa systems and a coordinated national branding strategy to promote Nigeria as a healthcare destination.
According to him, developing a complete medical tourism ecosystem — including immigration support, insurance integration, hospitality services and internationally accredited hospitals — will be necessary to compete with countries such as India, Turkey, Thailand and South Africa.
“If we can deliver quality care locally under the right conditions, Nigerians will stay, foreigners will come, and the healthcare sector will become a major economic driver,” she said.
She added that the private sector, financial institutions and governments must work together to transform healthcare from a social service into a strategic investment sector capable of generating jobs, foreign exchange and long-term economic growth.
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