Under-investment has been highlighted as one of the key issues affecting the health sector.
This was discussed during a loan partnership agreement of $10 million between First City Monument Bank (FCMB), the United States Agency for International Development (USAID), and the U.S. International Development Finance Corporation (DFC) to strengthen
Nigeria’s private health sector
The event had the presence of Melissa Jones, Mission Director of USAID Nigeria; Mrs. Yemisi Edun, Managing Director of FCMB; and other stakeholders from USAID and the International Finance Corporation (IFC).
Jones indicated that as Nigeria is struggling to meet the 2001 Abuja Declaration goal of allocating 15% of its budget to health amid competing national priorities, private investment in the sector is increasingly crucial to bridge the gaps.
This has led to a limit on access to finance which has remained a central concern for the numerous small businesses that dominate Nigeria’s health sector.
This, she said, impedes businesses’ ability to expand, diversify products and services and, in some cases, to operate.
Therefore, the financing opportunities being provided to selected private healthcare sector MSMEs would improve their ability to provide basic healthcare services to reach Nigeria’s growing population.
Jones stated that the loan would improve access to finance for businesses in the health sector, particularly micro, small, and medium-sized enterprises, and underserved populations, including women and youths.
Therefore, the agreement would advance the government’s efforts to achieve Universal Health Coverage (UHC) and improved healthcare for Nigerians.
Yemisi Edun, Managing Director of First City Monument Bank (FCMB), agreed that a robust healthcare system forms the foundation of national development.
She highlighted that with the rapid adoption of healthcare technologies, Nigeria’s health sector holds the potential for holistic transformation.
Edun noted that FCMB is eager to play a significant role in this journey by bridging long-standing gaps, enhancing efficiency, and ultimately supporting the sector in providing better care for Nigerians.
Jones further highlighted that beyond financing, USAID will also provide technical assistance to FCMB to support the bank’s loan and monitoring processes.
Also, according to Edun, the facility is a catalyst for progress, which would fuel services, expand infrastructure, and instill hope within the sector.
She also commended the DFC for its commitment to improving local access to quality healthcare and for investing in a healthier, more productive future for Nigerians by addressing the financing gap in the healthcare value chain.
