Nigerians travel less for healthcare overseas as spending drops by $5.24m

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A new report by the Central Bank of Nigeria (CBN) reveals a significant decline in medical tourism and healthcare spending by Nigerians. According to the CBN’s data on sectoral utilization for foreign exchange transactions, Nigerians spent $3.82 million on health-related services abroad in 2023. This represents a decrease of $5.24 million compared to $9.06 million spent in 2022.

The report offers a breakdown of spending throughout 2022, highlighting a trend of fluctuation. While figures started relatively low at $0.74 million in the first quarter, they spiked to $3.02 million in April before steadily declining throughout the rest of the year.

A breakdown of the report showed that $0.34m was spent in January; $0.32m in February; $0.38m in March; $0.50m in April; $1.28m in May; and $0.31m in June.

Also, in July, $0.01m was spent on medical tourism, and the amount jerked up to $0.26m in August, but the figure fell to $0.02m in September. In October, the amount increased to $0.10m, in November, it dropped to $0.02m again, and the figure rose to $0.28m at the end of December.

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The reasons behind this decrease in medical tourism spending are yet to be definitively established.

However, analysts suggest several potential contributing factors:

• Improved Domestic Healthcare: Investments in upgrading Nigerian healthcare facilities and attracting qualified medical professionals could be encouraging citizens to seek treatment domestically.
• Foreign Exchange Restrictions: The CBN’s policies regarding foreign exchange access may have inadvertently limited the ability of some Nigerians to pay for overseas medical care.
• Economic Downturn: The current economic climate in Nigeria might be leading citizens to prioritize affordability, causing them to opt for local healthcare options.

It’s important to note that a decrease in medical tourism spending doesn’t necessarily equate to an improvement in the overall quality of Nigerian healthcare.

While Nigerians might be traveling less overseas for treatment, it remains crucial to assess the capacity and efficiency of the domestic healthcare system to meet the needs of the population.

The CBN’s report serves as a springboard for further investigation into these trends. Understanding the factors influencing medical tourism spending can inform policies aimed at strengthening both the Nigerian healthcare system and its accessibility to citizens.