According to the National Bureau of Statistics (NBS), the Nigerian health sector’s real GDP grew by 2.41% year-on-year in the second quarter of 2024. This growth marks a slight improvement from the 1.95% recorded in the same quarter of 2023, reflecting a 0.46 percentage point increase.
Quarter-on-Quarter Growth
The sector also showed strong quarter-on-quarter growth, expanding by 3.96% in real terms. This increase highlights accelerating momentum in the health sector compared to the previous quarter, outpacing the previous quarter’s performance by 0.29 percentage points.
Despite this growth, the sector’s contribution to Nigeria’s overall real GDP in Q2 2024 stood at 0.75%. Although this is an improvement from the 0.72% contribution recorded in Q1 2024, it is still lower than the 0.77% contribution observed in Q2 2023.
Contribution to Overall GDP
While the sector has seen robust growth, its contribution to Nigeria’s overall GDP remains modest at 0.75% for Q2 2024. This slight improvement from Q1 2024’s 0.72% contribution is still below the 0.77% recorded in Q2 2023.
The health sector’s modest contribution underscores the need for continued investment to enhance its economic impact and more effectively meet the country’s healthcare demands. The growth in real GDP suggests an actual expansion in the sector’s output, which could indicate increased service provision, improved healthcare access, or enhanced efficiency.
However, the relatively small contribution to overall GDP highlights the importance of sustained focus and investment in healthcare to boost its economic influence.
Government Initiatives to Strengthen the Health Sector
The Federal Government’s recent initiatives align with broader efforts to strengthen Nigeria’s health sector. These include a new partnership between the Presidential Initiative for Unlocking the Healthcare Value Chain and the US Pharmacopeial Convention (USP) to increase local pharmaceutical production. The agreement aims to enhance local drug production and regulatory oversight, aiming to achieve 70% local production and create 30,000 new jobs by 2030.
Additionally, the government has issued an Executive Order removing import duties, VAT, and excise duties on pharmaceutical raw materials, intermediate products, and medical diagnostic equipment and machinery. Dr. Muda Yusuf, Director/CEO of CPPE, noted that this move is expected to reduce the cost of drugs, create jobs, and significantly enhance the well-being of citizens.
Moreover, the government signed a Memorandum of Understanding with Global Gases Group to establish production plants for liquefied medical oxygen in Nigeria. The Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, announced that new gas plants, each capable of producing 100 tons of oxygen per day, will be established across northern and southern Nigeria. This initiative aligns with the Nigeria Health Sector Renewal Investment Initiative and President Tinubu’s Executive Orders aimed at unlocking the health sector value chain.
