When private clinics struggle to stay open, the ripple effects go beyond healthcare—they shake the financial systems that support it. In Lagos, private doctors are raising the alarm about excessive taxes and fees, warning that these pressures could destabilise Nigeria’s healthcare sector and the financial institutions tied to its growth.
Private clinics, which provide over 70% of healthcare services in Nigeria, often rely on loans from banks, microfinance institutions, and fintech platforms to operate. But as taxes pile up and revenues shrink, many clinics risk defaulting on these loans.
According to Dr. Jonathan Esegine, Chairman of the Lagos branch of the Association of Nigerian Private Medical Practitioners, some doctors are leaving the profession entirely, leaving lenders exposed to higher risks.
The financial sector is closely tied to the stability of private clinics, and the rising tax burden could increase loan default risks. Lenders may become more cautious about financing healthcare businesses, potentially reducing credit availability. If this happens, it could stall growth in a sector critical to both public health and economic stability.
The challenges don’t stop there. Clinic closures lead to job losses, shrinking disposable incomes and reducing demand for financial products like savings accounts, loans, and insurance. Foreign investors, already hesitant about Nigeria’s business environment, may see the overburdened healthcare system as yet another red flag, further limiting growth opportunities.
Easing the tax burden on private doctors could change this trajectory. By stabilising the healthcare sector, the government could protect not just doctors but also the financial ecosystem that depends on their success. Without action, the consequences could ripple across the economy, from rising unemployment to tightened credit markets and lost investments.
