FG battles $10bn annual infrastructure deficit in health sector’

The Permanent Secretary, Federal Ministry of Health, Mr Abdullahi
Mashi, disclosed this in Abuja at the First Quarter Consultative Forum.

Mashi said that with the dwindling oil price, which accounts for over 70 percent of government’s revenue, there was no way the government alone could finance the infrastructure deficit in the health sector.

He, however, noted that the Federal Government current policy places emphasis on the private sector driving developments within the health sector, adding that this has created a favourable environment for PPPs and investment in health.

“The health sector has potentials for private investment and
government hopes to establish private sector driven world class
hospitals and diagnostic centres to reverse the direction of medical
tourism to Nigeria.

“This is the right time and opportunity for the health sector to
showcase its potentials as a business sector, rather than just being a social sector,” Mashi said.

He said the ministry plans to rehabilitate teaching hospitals, develop solar photovoltaic systems, install temperature scanning machines at the country’s entry point, using a PPP framework.

The permanent secretary also revealed the Federal Government’s plan to build the Abuja Medical City, which would be a one-stop-shop for first class medical services in the country, through a Public Private Partnership.

Also, the Director-General, ICRC, Mr Chidi Izuwah said the commission is presently working to simplify the PPP process, so that more Ministries, Departments and Agencies of government can use the model for their capital projects.

“In line with the ease-of-doing business initiative of the government, we have removed the requirement of presenting the Outline Business Case Compliance Certificates to FEC, before proceeding to the PPP procurement process.

“This has immensely improved the PPP delivery process by reducing the duration of the transaction, which has been a major complaint of many stakeholders.

“We are also working with the Federal Ministry of Justice to conclude on a template PPP agreement, which will also improve the time it takes for a PPP transaction to be concluded,” he said.

Izuwah stated that Nigeria has been invited to become a member of the World Association of PPP, which is a global network of infrastructure agencies, private sector companies and PPP professionals.

He said that Nigeria’s admission will open the country to more
investment opportunities and partnerships, while improving on critical infrastructure.