Medical tourism and health insurance in Nigeria

Reacting to the federal government’s plan to sanction civil servants going abroad for treatment thereby cutting down on medical tourism, she states: “If the government can follow this through, it would indeed be a positive thing for us because the truth is we have the skilled manpower in Nigeria. Medical tourism has taken our capital out and when those funds are within our system, it makes the quality of our service step up considerably and gives us ability to offer more in our health plans.”

Ukiri adds: “It’s an industry with extremely slim margin and that is why you find many HMOs in financial strains unable to pay hospitals. The global earnings before interest and tax, a financial matrix for HMOs is between six per cent and ten per cent – almost everything you take as premiums. However, the trick is in the volume and in Nigeria we haven’t achieved the volume. It is a great time to become a CEO because we are at the threshold of a rainfall and we are praying for it. If the market unlocks over two to three years it will be phenomenal. Unlocking it requires proper regulatory frame work, new legislation, a commendable and effective regulator who is also passionate about achieving a universal health coverage and ensuring operators are financially capable and technologically enabled to achieve great heights for this sector.”

So, what is the future of HMO in Nigeria? She simply responds: “Like the rest of the country, it might get hard before it gets better. I foresee a situation in which hopefully we do get a regulatory frame work we are hoping to have; what will come with that is a tougher operating environment. A lot more will be expected of the HMOs when the right and efficient regulatory frame work is in place.”