FCMB commits N20bn fund to bridge healthcare financing gap

First City Monument Bank (FCMB) has launched a ₦20 billion healthcare financing fund to support hospitals, pharmaceutical companies and other private healthcare businesses, as Nigeria intensifies efforts to strengthen healthcare infrastructure and attract private capital into one of the country’s most underfunded sectors.

The facility, unveiled at the bank’s inaugural Healthcare Summit in Lagos, is aimed at addressing the persistent financing constraints limiting expansion across Nigeria’s healthcare value chain while complementing the Federal Government’s drive to increase local production of medicines and medical devices.

The fund will provide long-term financing for hospitals, clinics, diagnostic centres, pharmaceutical manufacturers, pharmacies, maternity homes and other healthcare enterprises seeking capital for expansion, medical equipment acquisition, infrastructure development, technology upgrades and working capital.

The intervention comes as the Federal Government targets 70 per cent local production of medicines and medical devices by 2030 under the Presidential Initiative for Unlocking the Healthcare Value Chain.

Managing Director and Chief Executive Officer of FCMB, Yemisi Edun, said sustainable healthcare development requires patient, affordable and long-term financing capable of supporting business growth and improving service delivery.

Speaking through the bank’s Executive Director, Corporate Services and Service Management, Felicia Obozuwa, Edun described healthcare as both a social necessity and an economic growth sector.

“Healthcare is a social imperative and an economic priority. Building a strong healthcare system requires capital that is patient, affordable and long-term,” she said.

According to the bank, the fund forms part of a broader healthcare financing proposition that combines credit facilities with advisory services and strategic partnerships designed to improve operational efficiency and strengthen the investment readiness of healthcare businesses.

President of the Healthcare Federation of Nigeria (HFN), Njide Ndili, said access to finance remains one of the biggest challenges facing private healthcare providers across the country.

She cited the federation’s partnership with the PharmAccess Medical Credit Fund, noting that healthcare businesses have demonstrated strong loan repayment capacity when financing is supported by technical assistance, capacity building and quality improvement programmes.

Ndili disclosed that the HFN would collaborate with FCMB to develop a framework for pre-qualifying healthcare facilities and preparing businesses to attract investment.

The federation currently represents more than 400 healthcare organisations and 4,000 healthcare professionals nationwide.

The financing initiative also seeks to improve governance standards within the sector by encouraging healthcare operators to strengthen financial reporting, corporate governance and business management practices.

Minister of State for Health and Social Welfare, Dr Iziaq Salako, said the Federal Government has significantly increased healthcare financing in recent years to improve access to quality healthcare.

According to him, more than ₦339 billion has been disbursed through the Basic Healthcare Provision Fund over the past 12 years, including ₦235 billion released within the last three years under the Health Sector Renewal Investment Initiative.

He added that another ₦32.9 billion has recently been disbursed to support more than 8,300 primary healthcare centres, with plans to extend coverage to approximately 13,000 facilities across the country.

Salako called for greater mobilisation of both public and private capital into the healthcare sector and urged operators to adopt stronger governance structures, improve financial transparency and leverage blended finance models to support expansion.

The summit also identified significant investment opportunities across primary healthcare, diagnostics, pharmaceutical manufacturing, medical equipment production, digital health and healthcare infrastructure.

FCMB said its healthcare financing programme is designed to support businesses across the entire healthcare value chain as they expand capacity, improve service delivery and contribute to building a more resilient healthcare system.