Our previous article discussed several high-return investment opportunities within Nigeria’s healthcare sector.
This article aims to provide a clear, step-by-step guide for getting started with these opportunities, specifically designed for diaspora investors looking to launch a healthcare business in Nigeria.
Step 1: Research And Opportunity Validation
The first step in pursuing an investment opportunity, whether in healthcare or another sector, begins with thorough market research to identify specific healthcare gaps in targeted locations. Start by conducting extensive online research, reading articles, reviews, research funding and whatever else you can find to get primary information about the industry.
Next, carefully assess the opportunity in person, either by visiting Nigeria yourself or by enlisting a trusted friend or family member to conduct on-ground research on your behalf. This may involve visiting hospitals, consulting with healthcare professionals about unmet needs, observing patient flows at existing facilities, and evaluating competition in potential locations.
Alternatively, you can consider hiring healthcare consultants or a consulting firm specialising in healthcare investment opportunities.
They can provide valuable insights, including demographic data, health insurance coverage statistics, and income levels in target areas, which are essential for validating patient payment capacity. These consultants can also offer financial modelling, detailed startup costs, operating expenses, revenue assumptions, and break-even timelines, facilitating a realistic investment evaluation.
Step 2: Legal Structure And Regulatory Compliance
Once you’ve validated your opportunity and decided to move forward, the next step is registering a limited liability company with the Corporate Affairs Commission. This provides legal protection and establishes a professional business structure.
Healthcare facilities require multiple licenses and registrations depending on the type of services provided. This includes facility licenses from the Federal or State Ministry of Health, professional registrations with the Medical and Dental Council of Nigeria or the Pharmacists Council, and environmental health certifications.
Understanding legal requirements and compliance is crucial before launching.
Engaging a legal counsel specialising in healthcare regulations can be invaluable for navigating complex licensing requirements and ensuring full compliance before operations commence.
If your venture involves a partnership (which is likely), it’s crucial to define ownership percentages, management responsibilities, profit distribution, dispute resolution mechanisms, and exit provisions that protect all parties involved.
Consulting with a lawyer will also be beneficial in this area.
Step 3: Facility Development And Equipment Procurement
This step is especially essential if you are not investing in or partnering with an existing healthcare business.
Select or develop property in compliance with regulatory standards, ensuring facilities meet healthcare infrastructure requirements.
Renovation or construction must adhere to medical facility codes, which include safety, sanitation, accessibility, and specialised infrastructure such as medical gas systems, backup power, and waste disposal.
When it comes to equipment procurement, careful supplier selection is crucial. While international suppliers may offer superior quality and durability, they can pose higher costs and import challenges. Conversely, local Nigerian suppliers provide easier logistics and service support, although their product selection may be limited. A hybrid approach often works best, procuring critical equipment from international sources while sourcing routine supplies locally.
Step 4: Staffing And Operational Systems
Before commencing operations, you must recruit key personnel, such as medical directors, practice managers, and any other required technical staff.
Competitive compensation packages will help attract qualified professionals in a competitive healthcare labour market. But beyond that, ensure you’re implementing training programmes to establish standard operating procedures, customer service expectations, and quality protocols. Doing these will set your facility apart from typical healthcare experiences in Nigeria.
To effectively monitor operations, diaspora investors should utilise remote management systems.
Like cloud-based accounting software, patient management systems, and regular reporting structures. Doing so can provide insights into financial and operational performance even when you’re not physically on the ground.
Step 5: Marketing And Network Building
Professional branding is vital for establishing credibility and differentiation in competitive healthcare markets. Cultivating a digital presence through websites and social media can attract patients seeking quality healthcare services.
Participating in insurance networks is critical for driving patient volume. Establishing contracts with major Health Maintenance Organisations (HMOs) like Hygeia, AXA Mansard, and Reliance HMO can ensure a steady flow of patients.
You also want to prioritise building corporate partnerships with companies that offer employee health benefits, which can lead to substantial patient referrals.
Additionally, engaging with the community through health talks, free screening programs, and medical outreach can enhance brand awareness and demonstrate a commitment to the community beyond mere profit motives.
Action Steps
To seize any opportunity in Nigeria’s healthcare space, it’s crucial to conduct thorough due diligence and establish a supportive structure that facilitates venture success.
We are your trusted partner, with expertise in market research and more, to ensure that your investment is positioned for success right from the start.
Contact us today to get started!
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