The Naira is projected to continue its depreciation, with forecasts suggesting it could weaken to N1,993 per US dollar by 2028. According to a new report by BMI Research, a subsidiary of Fitch Solutions, this decline will pose significant challenges for Nigeria’s medical sector, which heavily relies on imports.
KEY FINDINGS:
• Continued Naira Depreciation: The Naira, currently hovering around NGN1700/USD, is expected to weaken further to N1,993/$1 by 2028, representing a substantial decline from N306/$1 in 2018.
• Impact on Healthcare: With over 95% of Nigeria’s medical devices imported, the weakening Naira will drive up the cost of these essential supplies, worsening accessibility to critical health technologies.
• Consumer and System Strain: As medical device costs rise, both the public health system and individual patients will face increased financial strain, exacerbating challenges in healthcare delivery.
• Potential for Local Industry Growth: On a positive note, the report suggests that a weaker Naira could make locally produced medical devices more competitive, fostering growth in Nigeria’s domestic manufacturing sector.
Despite a broader economic rebound anticipated for Nigeria, the healthcare sector’s reliance on imports means that a weakening currency will continue to present operational and financial hurdles. The report emphasizes the need for structural reforms and investment in the local production of medical devices to mitigate the impact of currency fluctuations.
Peoplesmind
