The cost of advanced medical equipment continues to rise, with MRI and PET scan machines now priced between $2 million and $3 million. This increase raises concerns about whether Nigerian hospitals should invest in new machines or opt for refurbished alternatives.
Nigeria’s medical technology market is projected to generate $783.9 million in revenue by 2025, with medical devices accounting for the largest share at $672.7 million. The sector is expected to grow at a compound annual growth rate (CAGR) of 9.57% between 2025 and 2029, reaching $1.13 billion by 2029. Despite this growth, many healthcare providers struggle with the high cost of acquiring cutting-edge equipment.
Dr. Debo Odulana, CEO of Cedarcrest Hospital, highlights these challenges and explores potential solutions. He notes that while technological advancements significantly improve diagnostics, affordability remains a major obstacle.
The Challenge of High-Cost Medical Equipment
MRI and PET scans play a crucial role in diagnosing conditions such as cancer and neurological disorders. However, the high cost of these machines limits their availability, particularly in resource-constrained settings.
“In the past decade, most hospitals in Nigeria relied on 0.5 Tesla MRI scanners. Now, some facilities invest in 3 Tesla MRI machines, which offer superior imaging. However, these come at a steep cost, making them unaffordable for many operators,” says Dr. Odulana.
To manage costs, hospitals often turn to refurbished machines from Europe and the U.S., which cost only 20-30% of new ones. While more affordable, these models may be slightly outdated, requiring doctors to compensate with clinical expertise.
Dr. Odulana warns that without proper insurance backing, hospitals investing in expensive equipment may struggle to recover costs. “Nigeria needs multiple PET scan machines, but financial constraints limit the number available. Without adequate insurance coverage, breaking even becomes difficult,” he explains.
Technology’s Role in Transforming Healthcare
Beyond medical equipment, technology reshapes healthcare delivery in Nigeria. AI-driven diagnostics, telemedicine, and digital health platforms improve access and efficiency.
“Technology makes a huge impact in disease management, particularly for cancer and cardiovascular conditions. It also enhances drug supply chain transparency, reduces counterfeit drugs, and improves access to essential medicines,” Dr. Odulana notes.
Despite infrastructure challenges and low internet penetration in rural areas, digital transformation holds great potential for improving healthcare access.
Bridging the Healthcare Access Gap
Limited access to healthcare remains a critical issue in Nigeria. However, technology helps close the gap through telemedicine and digital platforms.
“AI-powered symptom checkers allow Nigerians to receive preliminary assessments without visiting a hospital. Mobile health solutions, such as text reminders and USSD codes, improve maternal and child healthcare by notifying mothers about vaccinations and enabling online birth registrations,” he explains.
Financial access is another hurdle, but technology provides solutions. Some health insurance providers now offer micro-health insurance plans that allow individuals to pay as little as ₦500 to ₦1,000, sometimes using airtime.
AI’s Impact on Diagnosis and Treatment
Artificial intelligence plays a key role in improving healthcare services. However, the lack of electronic medical records (EMRs) in many hospitals limits AI adoption.
“EMRs enable AI to provide diagnostic insights and reduce errors. In hospitals using EMRs, AI already assists doctors with better decision-making and patient follow-ups,” says Dr. Odulana.
Automation also reduces operational costs. AI-powered CCTV monitoring detects patient falls and alerts healthcare providers, replacing the need for manual supervision.
Government’s Role in Healthcare Technology
While the government makes efforts to support healthcare technology, more work is needed.
“There are ongoing initiatives to establish a national electronic medical records system and support healthcare startups. However, the government should focus on enabling policies that encourage private sector investment, rather than trying to run these projects themselves,” Dr. Odulana advises.
The Future of Healthcare in Nigeria
Dr. Odulana believes Nigeria must continue to embrace innovation to improve healthcare accessibility and outcomes.
“Technology breaks barriers and creates new opportunities in healthcare. Increased investment in AI-driven diagnostics, telemedicine, and affordable health insurance models makes a significant impact. However, collaboration between the private sector and government is key to scaling these solutions for wider reach,” he concludes.
