The Secretary to the Government of the Federation, George Akume, has pledged to submit a formal memorandum to President Bola Tinubu recommending the creation of a dedicated Bank of Health to address Nigeria’s healthcare financing challenges.
Akume made the commitment on Wednesday during the 20th anniversary celebration of Everbright Diagnostic Laboratory Services in Abuja, where he described the proposal as a critical intervention that deserves Federal Government attention. The event, which also featured the launch of a book titled “Employee Retention and Turnover in Nigeria,” brought together healthcare stakeholders and government officials to discuss the sector’s persistent challenges.
“The chairman has called for the establishment of a bank. I think it is a very good suggestion. I assure you I am going to make a memo to that effect to Mr President,” Akume stated, according to reports from The Punch newspaper.
The proposal originates from Dr Everest Okpara, Chairman and Chief Executive Officer of Everbright Diagnostics, who argued that Nigeria’s healthcare sector requires the same level of dedicated financial support currently provided to agriculture and industry. Dr Okpara pointed out that if the country successfully established the Bank of Industry and the Bank of Agriculture, creating a similar institution for healthcare would be both necessary and achievable.
“If Nigeria can have the Bank of Industry, if Nigeria can have the Bank of Agriculture, then surely we can build a Bank of Health,” Dr Okpara stated during his address. He emphasised that such an institution would offer long-term, single-digit financing for credible healthcare providers, eliminating the burdensome requirements imposed by commercial banks.
According to Dr Okpara, the proposed Bank of Health would address several critical issues plaguing Nigeria’s healthcare sector. The institution would end prohibitive interest rates that currently discourage healthcare investment, empower hospitals and diagnostic facilities, build essential health infrastructure, reduce capital flight, and encourage medical professionals to remain in Nigeria rather than seeking opportunities abroad.
“If this idea were to be implemented, such an institution would end the suffocating interest rates sabotaging healthcare investment, empower hospitals, diagnostic facilities, and innovators, build the quantitative health infrastructure that our people desperately need, reduce capital flight, encourage and motivate our doctors, nurses, scientists, radiographers, and specialists to stay home instead of seeking rehabilitation abroad,” Dr Okpara explained, as reported by The Punch.
The SGF’s response reflects the Tinubu administration’s stated commitment to strengthening Nigeria’s health system through policies promoting local capacity and expanding access to quality care. Akume emphasised that the Federal Government would continue supporting institutions contributing to national development.
“This address will not be complete if I do not reaffirm that under President Tinubu’s administration, there is a deep commitment to building a healthier, safer, and more prosperous Nigeria. Through policies that encourage value creation, job expansion, institutional reform, and stronger health systems, the federal government will continue to support champion institutions like Everbright Diagnostics and strengthen our national capacity,” Akume stated.
The SGF also acknowledged Everbright’s contribution during the COVID-19 pandemic, when the laboratory provided critical testing services supporting Nigeria’s response to the health crisis. This recognition underscores the importance of private sector participation in addressing Nigeria’s healthcare challenges.
Nigeria’s healthcare sector faces numerous obstacles, including chronically underfunded hospitals, high-interest loans for medical providers, inadequate health infrastructure, and significant emigration of healthcare professionals. The “brain drain” phenomenon has seen doctors, nurses, and specialists leaving the country in search of better working conditions and remuneration abroad, weakening the domestic health system.
The proposed Bank of Health would join existing development finance institutions such as the Bank of Industry, which provides financing for industrial projects, and the Bank of Agriculture, which supports agricultural development. These institutions offer sector-specific financing at favourable terms compared to commercial banks, facilitating long-term investment and growth in their respective sectors.
Whilst the healthcare sector currently lacks dedicated financial infrastructure, the proposal aligns with global best practices where specialised development banks target specific economic sectors requiring sustained investment. Such institutions typically offer lower interest rates, longer repayment periods, and technical support to borrowers, making them attractive options for capital-intensive sectors like healthcare.
The establishment of a Bank of Health could potentially transform healthcare financing in Nigeria by providing accessible capital for building new facilities, upgrading existing infrastructure, purchasing modern equipment, and supporting medical research and innovation. This would address the current situation where commercial banks often impose stringent requirements and charge prohibitive interest rates that discourage healthcare investment.
Dr Okpara’s proposal suggests that improved financing would help retain medical professionals within Nigeria by creating better working environments and opportunities for professional development. This addresses the brain drain challenge, which has seen thousands of Nigerian-trained doctors and nurses relocate to countries offering superior working conditions and compensation.
The proposal also aims to build confidence amongst Nigerians in accessing healthcare within their own country, reducing the need for medical tourism, which currently costs Nigeria billions of naira annually as citizens travel abroad for treatments unavailable or unreliable domestically.
