NSIA, IFC sign $154m deal to scale oncology, diagnostic services across Nigeria

Nigeria’s sovereign wealth fund has secured long-tenor naira financing from the World Bank’s private-sector arm to expand cancer treatment and advanced diagnostic services across the country, as authorities seek to curb medical tourism and improve access to specialised care.

The Nigeria Sovereign Investment Authority on Tuesday night signed an agreement with the International Finance Corporation (IFC) to provide local-currency financing to NSIA Advanced Medical Services Ltd. (MedServe), a wholly owned healthcare subsidiary of the fund.

The partnership will support the rollout of diagnostic centres, radiotherapy-enabled cancer facilities and cardiac catheterisation laboratories across several Nigerian states.

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The total project size is $154.1 million, with IFC contributing about ₦14.2 billion ($24.5 million), based on current exchange rates, in long-tenor naira financing backed by the International Development Association’s Private Sector Window Local Currency Facility.

The structure marks IFC’s first healthcare investment in Nigeria using this model and is designed to reduce foreign-exchange risks that have long constrained large-scale private investment in the sector.

“This partnership with IFC represents a significant milestone in NSIA’s commitment to strengthening Nigeria’s healthcare ecosystem through sustainable, locally anchored investment solutions,” Aminu Umar-Sadiq, NSIA’s managing director and chief executive officer, said at the signing ceremony in Abuja.

“By deploying long-tenor naira financing, we are addressing critical infrastructure gaps while reducing foreign exchange risk and ensuring that quality diagnostic and cancer care services are accessible to underserved communities.”

Umar-Sadiq said the initiative grew out of discussions on how to stretch NSIA’s capital amid Nigeria’s vast infrastructure deficit by crowding in external funding. He credited support from the finance and health ministries for backing a model that combines commercial viability with social impact, allowing NSIA to recycle its own capital into other priority infrastructure projects.

MedServe currently operates oncology and diagnostic centres co-located within public hospitals and plans to expand to about 15 diagnostic and treatment facilities nationwide.

By the second quarter of 2026, the platform is expected to grow to four oncology centres and 15 diagnostic centres, up from one oncology facility and two diagnostic hubs. The expansion will feature advanced medical technologies including CT and MRI imaging, digital pathology laboratories, linear accelerators and cardiac catheterisation equipment.

The project is expected to create about 800 direct jobs, with IFC estimating up to 1,700 jobs when indirect employment is included, and train more than 500 healthcare professionals in oncology and cardiology. Services will be priced to align with local income levels, according to NSIA, with the aim of broadening access to specialised care for low-income patients.

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IFC will also provide advisory support covering patient safety, measurement of access among vulnerable groups and green-building standards. A portion of the investment is classified as climate finance due to energy-efficient facility design and sustainability features.

For IFC, the deal aligns with Nigeria’s Universal Health Coverage agenda and reflects a broader push to mobilise private capital to address the growing burden of non-communicable diseases across Africa.

“Nigeria’s focus on addressing the rising prevalence of non-communicable diseases presents a significant opportunity to deploy innovative financing mechanisms capable of mobilizing private capital at scale, while ensuring equitable access to quality care,”  Ethiopis Tafara, IFC’s vice president for Africa said.

“This ambition is consistent with our broader vision for Africa, one where resilient health systems and inclusive growth reinforce each other to deliver long-term impact across the continent.”

Wale Edun, finance minister and coordinating minister of the economy described the transaction as part of a wider effort to position healthcare as an economic growth driver, noting that Nigeria spends billions of dollars each year on medical treatment abroad, according to government estimates.

He said partnerships with institutions such as IFC offer more than capital by strengthening governance, credibility and investor confidence.

“The role of IFC is not just a monetary role,” Edun said, eventhough he called for more funding from the corporation. “It is to form leadership, it is to support the encouragement and the commitment.”

Muhammad Ali Pate, coordinating minister for health and social welfare said the agreement reflected deeper structural changes under way in Nigeria’s health sector following recent macroeconomic and policy reforms. He argued that healthcare should be treated not merely as a social service but as a productive value chain capable of generating jobs and growth.

“This is a moment that we are celebrating because of the hard work, the quality of people that we have,” Pate said. “The timing is right.”

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Pate added that expanding domestic oncology and diagnostic capacity would reduce catastrophic health spending for households and support Nigeria’s ambition to raise health’s contribution to gross domestic product over the next decade. He urged development partners to deepen their engagement as reforms take hold, saying the country is better positioned to absorb long-term investment than in previous cycles.

The project supports the government’s Health Sector Renewal Investment Initiative and the Presidential Initiative for Unlocking the Healthcare Value Chain, both aimed at attracting private capital while strengthening domestic capacity.

Officials said MedServe’s co-location strategy with public hospitals improves capital efficiency and reinforces the public-private healthcare ecosystem, creating a platform that could be replicated across other segments of Nigeria’s health system.

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