Fitch Solutions projects a significant depreciation of Nigeria’s naira, forecasting it could fall to N1,993 per US dollar by 2028. The company’s subsidiary, BMI Research, reports that although Nigeria’s economy is expected to rebound, the medical devices market will face challenges, largely due to currency weakness and import dependence. Despite this, the report anticipates a steady growth rate in the sector, driven by the country’s large population and the ongoing demand for healthcare equipment due to the double burden of chronic and infectious diseases.
The report emphasizes that medical device imports dominate Nigeria’s market, with local production limited. High import costs are expected to rise further as the naira weakens, impacting both healthcare providers and consumers. The recent National Health Insurance Authority Bill, which mandates health insurance for citizens, may help increase demand for medical devices. However, the weak naira will erode purchasing power, especially for essential and high-cost medical technologies, making healthcare affordability a pressing issue.
In response to inflationary pressures, President Bola Tinubu signed an executive order in June 2024, waiving tariffs and taxes on selected medical equipment and materials to reduce production costs. While this order aims to support local manufacturing and make healthcare products more affordable, Fitch suggests that persistent challenges like currency depreciation and import reliance may continue to hinder growth in Nigeria’s medical device market.
