Rising Healthcare Cost and the Surge in Consumer Prices

Proshare

Thursday, June 17 2021  / 02:19 PM / by CSL Research / Header Image Credit: Healthcare Finance

 

The sustained surge in consumer prices in Nigeria has not gone unnoticed and the effect of rising food prices has been extensively discussed overtime. A significant driver of inflation which has not received much attention in recent times is the continued rise in health care cost, which going by the Inflation report of May 2021, rose by 15.8% y/y and 1.1% m/m.

 

In a recent statement, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele noted that a key factor that has impeded access to healthcare for Nigerians is the prevailing cost of healthcare services, amid the erosion of consumers' purchasing power.

 

In the five years preceding May 2020, the Health care sub-index of the core inflation grew at an average rate of 10.0%. Following the Foreign Exchange (FX) concerns in 2020, healthcare cost has been on the rise.

 

The rise in the cost of pharmaceutical products, medical services, dental services, paramedical services, and hospital services have jointly accounted for the 15.8% y/y rise in health care cost in the last 12 months ending May 2021. Urban health inflation rose the most by 16.7%, while rural health inflation trailed at 15.1% within the period.


Proshare Nigeria Pvt. Ltd.

 

One of the major challenges in the industry overtime is the reluctance of the average Nigerian to take on health care insurance, as out of pocket payment constitutes c. 76.0% of total healthcare expenditure. As of Q1 2021, the health care sector contributed 0.7% of total Gross Domestic Product, that portends more room for improvement given how pivotal the strategic is to the economy

 

In our view, cost, and accessibility of healthcare services in Nigeria must be an area of focus for the government and we believe both public and private sector participation will be required.


Kindly share and stay connected with us on our platforms HERE

You can also subscribe to our NEWSLETTER  

 

Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

Related News

  1. Headline Inflation Increases by 17.93% YoY In May 2021, 0.19% Lower Than April 2021 Rate - NBS
  2. Comercio Partners May 2021 Macro-Economic Report - Trajectory of Inflation Points Northwards
  3. Headline Inflation to Increase Again to 18.2% in May 2021
  4. May 2021 Inflation Expectation: Inflation in Advanced Climes Sees Uptrend
  5. Nigeria Q1 2021: Out of Recession into Stagflation
  6. Inflationary Pressure Still Stretching Wallets
  7. Falling Inflation Allows MPC A Temporary Sigh of Relief
  8. Rising Inflation: FG Called to Block Leakages and Reduce the Cost of Governance
  9. Inflation Moderation Could Cool off Immediate Rate Hike Talks
  10. Unexpected Decline in April 2021 Headline Inflation
  11. The Naira Depreciated Against the US Dollar on IEFX Window as Nigeria's Oil Production Improved
  12. Headline Inflation Increases by 18.12% YoY In April 2021, 0.05% Lower Than March 2021 Rate - NBS
  13. April 2021 Headline Inflation to Reach 18.77%

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

READ MORE:
Related News
SCROLL TO TOP