With foreign funding for healthcare declining, pension funds and other domestic investors have been encouraged to invest in Nigeria's healthcare sector. This call was made at a private markets and healthcare roundtable organised by HealthCap Africa in Lagos. The meeting brought together pension fund managers, regulators, development finance institutions, healthcare investors, and operators to discuss ways to mobilise more private capital for healthcare.
The roundtable, themed 'Healthcare as an Asset Class,' identified pension funds as one of the largest pools of domestic capital that could be used to finance healthcare infrastructure and businesses. Representatives of pension funds at the event managed over $5 billion in assets, highlighting the potential scale of capital that could be directed towards the sector.
The decline in funding from foreign assistance programmes, such as the United States Agency for International Development (USAID), has made it more urgent for Nigeria and other African countries to develop stronger domestic sources of healthcare financing. Africa carries about 22 per cent of the world's disease burden but receives only about one per cent of global health spending, resulting in an estimated $1.1 trillion annual healthcare financing gap.
Stakeholders at the meeting stressed that Africa can no longer rely mainly on foreign aid to fund healthcare. They emphasised the need for government, pension funds, insurers, development finance institutions, philanthropists, and private investors to play complementary roles in financing healthcare.
Participants called for the Securities and Exchange Commission (SEC), National Pension Commission (PenCom), fund managers, and other institutional investors to develop investment products that would allow pension funds to participate in healthcare while protecting contributors' savings. They also urged more investment in early-stage healthcare businesses, noting that many promising projects struggle to attract the right type of capital.
Nigeria has a significant base of private-market activity to build on, with 513 Seed+ deals recorded between 2021 and 2025, accounting for more than a quarter of Africa's early-stage investment activity. Five of Africa's eight unicorns are based in Nigeria. Stakeholders urged regulators, pension fund managers, investors, and healthcare operators to deepen cooperation and develop transparent and well-governed investment structures.
Dr. Ola Brown, Founder and General Partner of HealthCap Africa, cited the experience of India, where sustained private investment has achieved significant results in healthcare. Brown pointed to Quadria Capital, a major healthcare-focused investment firm in Asia, which has raised over $1 billion and has assets under management of over $4 billion.
Key points
- The meeting identified pension funds as one of the biggest pools of domestic capital that could be used to finance healthcare infrastructure and businesses.
- Africa carries about 22 per cent of the world's disease burden but receives only about one per cent of global health spending.
- The stakeholders stressed the need for the development of investment products that would allow pension funds to participate in healthcare while protecting the savings of contributors.
