The Impact of Health Tourism on the Nigerian Economy: a Lesson from India's Health Tourism Model

Health tourism has emerged as a significant component of the global economy, yet it presents a dual challenge for developing nations. While countries like India have successfully positioned themselves as leading inbound medical tourism hubs, leveraging affordable costs and high-quality, internationally accredited medical care, Nigeria is challenged by a massive annual outflow of citizens seeking treatment abroad. This phenomenon results in a significant financial drain, with Nigeria losing an estimated $1 billion annually in foreign exchange to outbound medical tourism. This capital flight is compounded by an underfunded domestic healthcare sector, inadequate infrastructure, and a persistent brain drain of skilled medical professionals.
This study aims to assess the economic impact of this medical exodus on the Nigerian economy through a comparative analysis with the successful Indian health tourism model. Employing a descriptive research design based on a review of secondary data from national and international health and economic agencies, the research examines the factors driving Nigerians abroad, the financial costs incurred, and the strategies that have allowed India to generate approximately $9 billion annually from the sector.
The findings highlight a stark disparity: Nigeria's healthcare system is characterized by a shortage of specialists and high domestic treatment costs, while India's success is driven by cost-effectiveness, advanced technology, and strong government support. The study concludes that for Nigeria to stem capital flight and develop a competitive domestic industry, it must prioritize strategic investment in modern healthcare infrastructure, implement government policies to attract and retain medical professionals, and adopt the private-sector led growth model exemplified by India's success.