The Nigerian health sector’s real GDP grew by 2.41% year-on-year in Q2 2024, up from 1.95% in the same quarter of 2023.
According to reports by the National Bureau of Statistics (NBS) released today, Nigeria’s Human Health and Social Services sector experienced a 2.41% year-on-year real GDP growth in the second quarter of 2024.
This figure marks a slight improvement from the 1.95% growth recorded in the same quarter of 2023, reflecting a 0.46 percentage point increase.
Quarter-on-Quarter growth
- The sector demonstrated robust quarter-on-quarter growth, expanding by 3.96% in real terms. This substantial increase indicates accelerating momentum in the health sector’s development compared to the previous quarter.
- Q2 2024’s growth outpaced the previous quarter’s performance by 0.29 percentage points, suggesting a positive trend in the sector’s real output.
- Despite the growth, the sector’s contribution to real GDP stood at 0.75% in Q2 2024. This figure is lower than that recorded in Q2 2023 but shows an improvement from the 0.72% contribution in Q1 2024.
Contribution to overall GDP
Despite the sector’s robust growth, its contribution to Nigeria’s overall real GDP in Q2 2024 stood at 0.75%. While this represents a slight improvement from the 0.72% contribution recorded in Q1 2024, it is still lower than the 0.77% contribution observed in Q2 2023.
- The modest contribution signifies the need for continued investment in the health sector to enhance its economic impact and ensure that it can meet the country’s healthcare demands effectively.
- The accelerating real GDP growth suggests genuine expansion in the health sector’s output, potentially indicating increased service provision, improved healthcare access, or enhanced efficiency in the sector.
- However, the relatively small contribution to overall GDP highlights the need for continued focus on and investment in healthcare to boost its economic impact.
- The Federal Government’s recent moves to strengthen Nigeria’s health sector align with broader efforts to boost local drug production in a new partnership between the Presidential Initiative for Unlocking the Healthcare Value Chain and the US Pharmacopeial Convention (USP) to increase its local pharmaceutical production
- The agreement focuses on enhancing local drug production and regulatory oversight, with an ambitious target of achieving 70% local production and creating 30,000 new jobs by 2030.
The Federal Government also declared an Executive Order removing import duties, VAT, and excise duties on pharmaceutical raw materials, intermediate products, and medical diagnostic equipment and machinery.
Dr. Muda Yusuf, Director/CEO of CPPE, highlighted that this move is expected to reduce the cost of drugs, create jobs, and significantly enhance the well-being of citizens.
Additionally, the government signed a Memorandum of Understanding with Global Gases Group for the establishment of production plants for liquefied medical oxygen in Nigeria.
The Minister of Health and Social Welfare, Prof. Muhammad Ali Pate, announced that new gas plants, each capable of producing 100 tons of oxygen per day, will be established across northern and southern Nigeria.
He emphasized that this initiative aligns with the Nigeria Health Sector Renewal Investment Initiative and President Tinubu’s Executive Orders aimed at unlocking the health sector value chain.
