Nigerians spend between $1.6 billion and $2 billion each year on medical treatment abroad, putting pressure on the economy and exposing gaps in the local health system, according to data from healthcare investment agencies.
However, this trend is showing signs of reversal.
For decades, the search for medical treatment abroad placed a heavy burden on Nigeria’s economy and exposed long-standing weaknesses in its local healthcare infrastructure.
But the narrative is beginning to change.
Several hospitals and healthcare entrepreneurs across Nigeria are now taking steps to deliver world-class services locally, aiming to retain the same patients who would previously seek treatment overseas.
Naijaonpoint recently spoke with Dr. Olakunle Onakoya, Consultant Orthopaedic and Trauma Surgeon, and CEO of Cedarcrest Hospitals, Lagos. He explained why outbound medical tourism is slowing down and how new investments, particularly in multi-specialty hospitals, are reshaping healthcare delivery in Nigeria.
According to Dr. Onakoya, true progress depends not on bans or travel restrictions but on building trust, establishing modern facilities, and delivering globally competitive outcomes.
He emphasized that unlocking access to capital, smarter regulation, and quality-driven policies are critical to positioning Nigeria as a thriving medical tourism hub.
Olakunle Onakoya: I think medical tourism is slowing down, and that slowdown is due to a number of reasons. Some are directly linked to the state of healthcare in Nigeria, while others are more indirect.
One major reason for this is affordability. For most Nigerians, travelling abroad for medical care isn’t as easy as it used to be. The foreign exchange situation has made it much more expensive. What people could afford two or three years ago is now out of reach for many. So, naturally, fewer people are going abroad for healthcare at every small opportunity.
But beyond that, I believe the more important reason is that many of the services people used to travel for are now available in Nigeria. And not just available; they’re being offered at very high, global standards across different specialties.
If you look at medical tourism in terms of push and pull factors, the push being reasons that drive people out, and the pull being what attracts them abroad, both have reduced. The push factors are no longer as strong because the care people used to seek abroad can now be found here. And the pull factors, those things that used to make foreign hospitals more attractive, have also weakened.
Now, I may not have data, but from my experience and perspective, far fewer Nigerians are travelling abroad for medical treatment today compared to five years ago.
Olakunle Onakoya: First, it’s important to say that it’s difficult to determine exactly how much is spent on medical tourism. What we often rely on are rough estimates, such as data on medical visas issued by popular destination countries. But that doesn’t capture the full picture, like the informal cases where people travel to accompany others or seek minor care abroad.
That said, medical tourism still happens, and there are two main reasons: some are real, others imagined. The real reason is that some Nigerians have experienced poor outcomes locally. Sometimes it’s because they didn’t see the right specialist, or the facility lacked the proper diagnosis or skill level. And when outcomes aren’t optimal, word of mouth spreads quickly, which is a powerful driver of medical tourism.
Then there’s the imagined reason: many people simply assume that high-quality care isn’t available here. At Cedarcrest Hospital, Lagos, for instance, we often hear from patients who are surprised by the standard of care and our modern facilities. Many say they didn’t know this level of surgery or treatment was even possible in Nigeria. So, a lack of awareness and trust is a big part of the problem.
Then there’s the imagined reason: many people simply assume that high-quality care isn’t available here. At Cedarcrest Hospital, Lagos, for instance, we often hear from patients who are surprised by the standard of care and our modern facilities. Many say they didn’t know this level of surgery or treatment was even possible in Nigeria. So, a lack of awareness and trust is a big part of the problem.
Olakunle Onakoya: Healthcare in Nigeria is definitely beginning to attract more capital, both foreign and local. A key milestone was during the COVID-19 pandemic when the federal government, through the Central Bank and Bank of Industry, introduced a healthcare intervention fund. That fund supported hospitals in acquiring critical medical equipment. While hospitals still had to meet business criteria, it signalled a clear vote of confidence in the sector.
That kind of support helped encourage not just foreign investors but also patient, local capital people who are willing to take long-term positions in Nigeria’s healthcare space. It’s created a more serious, focused interest in building sustainable facilities. I would say we are in very interesting times for healthcare investment in Nigeria.
Olakunle Onakoya: Thirty years ago, hospitals in Nigeria were mostly small, single-specialist practices, what you might call “mom and pop” setups. Over time, this evolved into more specialist practices, but still often based on the founders’ areas of expertise.
Today, we’re seeing fully developed, multi-specialist hospitals which focus on orthopaedic surgery, trauma care, vascular surgery, and related subspecialties. Other hospitals are excelling in cardiology, oncology, and so on. These are centers of excellence providing global-standard care.
We’re also seeing that model extend into public hospitals via PPPs. Examples include the NSIA-LUTH Cancer Centre in Lagos and the developing cancer facility at the Federal Medical Centre, Abuja. So, while PPPs are significant, I believe what’s changing the landscape even more is the growth of private multi-specialist hospitals offering world-class care. That’s what’s truly enhancing Nigeria’s competitiveness.
Olakunle Onakoya: Nigeria remains a very difficult environment to do business. We rank low globally on the ease of doing business. Healthcare is no exception. Access to capital is a major challenge; bank loans are extremely expensive. Then there’s the issue of import logistics: getting equipment into the country is tough, and the customs duties are often very high.
In most countries, if you’re bringing in equipment that serves the public good, like healthcare, you receive tax or import concessions. But in Nigeria, that’s rarely the case. This adds to the cost and limits the ability of hospitals to invest in modern, lifesaving technology.
And then, even with those investments, we face issues with competition. A hospital might invest billions to meet global standards, only to find a small clinic opening next door with no regulation and undercutting prices. Thankfully, in Lagos, we have a relatively strong regulatory body, but the overall environment still needs improvement to support quality-driven competition.
We also face a unique issue: the regulatory body is often also a competitor. Government hospitals are regulated by the same ministries that run them, which can create conflicts of interest. Moreover, private hospitals often face unfair competition from unregulated or poorly equipped facilities. Patients, driven by price alone, may choose these places despite the risks. That undermines trust in the system and endangers lives.
Olakunle Onakoya: Well, policies exist, but enforcement is another matter. Take, for example, the past directive restricting public officials from seeking care abroad. That’s policy, but without consistent enforcement, its impact is limited.
What the government should focus on is the pull factors creating an environment where top-tier care is available and accessible. That means easier access to capital, reasonable import duties, and regulations that ensure quality across the board. Also, regulators must be fair and consistent in applying standards across the public and private sectors.
Let the environment be such that healthcare businesses can thrive, and people will naturally choose local options if the quality is assured. That’s what we and others in space are trying to build.
Olakunle Onakoya: Investment will always follow where there is a yield. If Nigeria presents a stable, predictable policy environment, with consistent regulation and access to foreign exchange, then capital will come.
We don’t need to legislate against going abroad for care. If Nigerians are confident, they can get the same quality of treatment here, they will stay. So the focus should be on improving quality, strengthening infrastructure, and making healthcare a truly viable business.
Other countries like India have succeeded in medical tourism not just because of cheaper care, but because of quality, consistency, and branding. We can do the same, provided the right policies are in place and the environment encourages investment.