In a major move to tackle Nigeria's huge spending on foreign medical trips, Famfa Oil Limited has opened a top-tier hospital in Osun State. The new Modupe and Folorunso Alakija Medical Research and Training Hospital (MOFAMRTH) at Osun State University (UNIOSUN) is a direct private-sector answer to the country's health funding crisis.
A $7 Billion Drain on the Economy
Nigeria is losing a massive amount of money every year because its citizens travel abroad for medical care. Recent data from the Nigerian Medical Association (NMA) shows this medical tourism now costs an estimated $7 billion (N10.7 trillion) annually. This staggering sum represents nearly 19.6% of the nation's total federal budget, creating a severe macroeconomic leak.
Historical records from the Central Bank of Nigeria (CBN) reveal the scale of the problem. From 2010 to 2020, Nigerians officially spent over $11.01 billion on healthcare services overseas. When combined with spending on foreign education, the total capital flight surpassed $39.66 billion, an amount almost equal to Nigeria's foreign reserves at their highest point.
A Strategic Health Investment
Famfa Oil, through its donors Mr. Modupe Folarin Alakija and Apostle Dr. Folorunso Alakija, built MOFAMRTH as a strategic solution. The 250-bed facility is designed as an industrial-scale "import substitution" model for healthcare. It will offer the high-end diagnostic and surgical services that Nigerians currently seek in countries like India and the United Kingdom.
"The economic problem is obvious: we are sending our wealth out of the country to buy health," a spokesperson for Famfa Oil explained at the opening ceremony. "With the government's health spending per person at a critically low $7.80 per year, the public sector cannot fix this gap alone. We are building the infrastructure to keep Nigerian money in Nigeria, which will create a multiplier effect for local medical manufacturing and support services."
Cutting Costs and Keeping Forex
The hospital's 20 clinical departments will provide specialised care at a much lower cost than treatment abroad. For example, a heart bypass surgery in the United States can cost more than $100,000. MOFAMRTH aims to offer similar quality at prices competitive with Indian hospitals, while eliminating extra expenses like international flights, medical visas (often $252), and overseas accommodation for patients' families.
This initiative by Famfa Oil is currently the most significant private effort to reclaim Nigeria's medical sovereignty. By providing world-class care locally, it seeks to plug the billion-dollar drain on foreign exchange and build a more resilient national health system for the future.
