For the Nigerian economy, medical tourism is no longer viewed solely as a healthcare concern. It has become a measurable challenge for foreign exchange. Central Bank of Nigeria data shows that Nigeria lost about $11 billion to overseas medical and educational services over the last decade, exerting sustained pressure on the naira and widening structural deficits in the health sector.
Against this backdrop, the commissioning of the Modupe and Folorunso Alakija Medical Research and Training Hospital at Osun State University represents a targeted private sector intervention that analysts say could offer a replicable model for reducing Nigeria’s healthcare-related capital flight.
The Macroeconomic Case
Nigeria currently loses an estimated $1.2 billion to $2.39 billion annually to outbound medical travel. BusinessDay analysis indicates that nearly 60 per cent of this outflow is driven by four clinical specialities: oncology, cardiology, nephrology and orthopaedic surgery.
By equipping the Modupe and Folorunso Alakija Medical Research and Training Hospital to handle these high-complexity cases, Famfa Oil Limited and the Alakija family are effectively deploying an import-substitution strategy within the healthcare sector.
The 250-bed facility is projected to serve about 350,000 patients within its first five years of operation, a volume that could significantly reduce the demand for foreign-denominated healthcare services.
Addressing the Economics of Brain Drain
Beyond issues of capital flight, Nigeria’s healthcare sector is also grappling with a significant loss of skilled personnel. Economists increasingly view the exodus of trained medical professionals not simply as labour mobility, but as a loss of valuable public investment.
Each Nigerian-trained doctor represents an estimated $51,000 or N78.5 million in public training subsidies. With more than 16,000 doctors leaving the country in the last five years, the cumulative loss to the system is substantial.
Healthcare investment analysts argue that infrastructure remains a key driver of investment.
Doctors do not leave only for higher pay. They leave because they cannot practise at the top of their training without the right tools. Facilities such as the Osogbo-based hospital are therefore being positioned as retention assets that alter the return on investment for specialised medical professionals.
Nigeria’s Healthcare Gap in Numbers
More than 16,000 doctors emigrated from Nigeria in the last five years.
Nigeria’s doctor-to-patient ratio stands at about 1 to 4,000 compared to the World Health Organisation benchmark of 1 to 600
An estimated 20 per cent of national healthcare expenditure is lost annually to inefficiencies and medical tourism.
Private Capital and Tertiary Healthcare
Although the hospital is located within a state-owned university, its development reflects the standards of the private sector. The project followed a seven-year development cycle targeted on scalability, research capacity and long-term relevance to global medical trends.
For the Alakijas, the social return on investment lies in improving access to specialised care, particularly in oncology, where Nigeria records about 80,000 cancer-related deaths annually, many linked to late diagnosis and limited treatment infrastructure.
For the government, the fiscal return is tied to preserving foreign exchange, building healthcare capacity, and developing a localised health economy within the South West region.
The Bottom Line
As Nigeria prepares for a projected N58.47 trillion national budget in 2026, the limits of public funding in closing infrastructure gaps are increasingly evident. Private capital is expected to play an increasing role in sectors traditionally dominated by government spending.
The Modupe and Folorunso Alakija Medical Research and Training Hospital represents more than a healthcare facility. It is a strategic attempt to reclaim a $7 billion annual market currently lost to medical tourism.
For other Nigerian conglomerates, the question is no longer whether healthcare investment is viable; it is whether the opportunity cost of inaction is now too high to ignore.
