Meanwhile, in rural communities, one doctor is expected to look after 5,000 patients. If that doesn’t feel like a national crisis, perhaps this will: Nigerians spend an average of N5,200 every month on self-medication because they simply cannot trust hospitals to be there when they need them.

However, in the middle of this dysfunction, we’ve selected two HealthTech brands who are torchbearers for a broken system; Helium Health and Reliance HMO. 

Both founded in 2016, both funded by global investors, both leveraging technology. But they serve completely different corners of the healthcare puzzle: one is wiring up hospitals with digital infrastructure, the other is selling ordinary Nigerians something close to peace of mind. So, the question? Which one serves Nigerians better?

The Context: Digital Health as a Lifeline

Globally, digital health has gone beyond being experimental. The market is projected to hit $660 billion by the end of 2025, growing at nearly 25% annually since 2019. Artificial intelligence alone is set to contribute over $102 billion by 2028. 

In Nigeria, the digital health market will reach $645 million this year, driven by smartphone penetration, improved internet, and the government’s goal to digitise 70% of health records by 2025.

On the demand, 70% of Nigerian doctors now use some form of healthtech tool. Patients are booking virtual consultations more, and insurers are relying on apps to reduce paperwork. Against this backdrop, Helium Health and Reliance HMO have risen to prominence.

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Helium Health: Building the Rails

Helium Health is the backbone of African hospitals with an indispensable product: Electronic Medical Records (EMR) and Hospital Management Information Systems (HMIS). 

These systems replace dusty paper files with digital dashboards, automate billing, manage drug inventories, and streamline appointments.

Helium Health has raised $42.2 million to date and now operates in Nigeria, Ghana, Liberia, Senegal, Cameroon, Uganda and Kenya. Its acquisition of Meddy in 2021 and development of HeliumDoc allowed it to integrate AI-powered tools for telemedicine, doctor discovery, automated workflows and patient engagement tools. Through its HeliumCredit product, it also offers financing to hospitals starved of liquidity.

Hospital administrators commend Helium Health for one thing: control. With over 1,000 facilities onboarded and thousands of clinicians using its software, it has become the quiet enabler of efficiency in a chaotic system. The average patient may never hear of it, but without Helium, many hospitals would still be filing patient data in dusty cabinets.

Reliance HMO: Delivering the Ride

Reliance HMO sits on the other end, highly visible, customer-facing, and almost evangelical about access. Unlike Helium, Reliance doesn’t build tools for hospitals. It sells health insurance plans directly to individuals, families, and businesses, plans that truly work.

With $51.1 million raised so far, Reliance has built a provider network of over 2,600 hospitals in Nigeria and 3,800 globally. Its platform gives users telemedicine, cashback incentives for unused plans, and transparent, flexible options like the Red Beryl plan at ₦38,650 annually. For many SMEs and startups, this affordability is the difference between employees being insured or not at all.

Customer feedback usually highlights its quick claims process, responsive support team, and user-friendly mobile app. Reliance has also pushed innovation in chronic care, piloting programmes in diabetes management that reduced fasting blood sugar levels by 12% for participants.

In short, Reliance is the brand patients see, touch, and trust.

Head-to-Head Comparison

Which Serves Nigerians Better?

This is not a straightforward fight. Helium Health is the engine room, Reliance HMO is the frontline face. Helium ensures hospitals can run efficiently; Reliance ensures patients can actually access care. One is building the rails, the other is driving the train.

If you’re a hospital administrator, here’s your answer: Helium Health is the partner you need. If you’re an HR manager trying to insure your staff, Reliance HMO is the obvious choice. In reality, Nigerians need both, because infrastructure without access is meaningless, and access without strong infrastructure collapses quickly.

Nigeria’s health sector will not be saved by government spending alone. It will be saved by fierce experiments like Helium Health and accessible models like Reliance HMO. Each represents a different strategy to solve the same problem: how to give Nigerians dignified, affordable, and reliable healthcare.

So, which serves Nigerians better? The answer depends on where you stand. But if both continue to grow and eventually intersect, the biggest winners won’t be the companies, it will be the patients who, for once, might actually find the system working in their favour.

Following a successful rollout to key industry stakeholders, the mobile application is now available for download on the Google Play Store and Apple App Store for both Android and iOS users.

InsurEase allows customers to purchase a variety of insurance policies, health, device, motor, and travel directly from their smartphones. Designed with user convenience in mind, the app offers a seamless, user-friendly experience, enabling users to explore, compare, and secure coverage in just a few taps.

Transparency Scape aims to empower customers with access to affordable, reliable, and convenient insurance policies while giving them the flexibility to choose from a wide range of offerings from top-tier insurance providers. 

These partners include AXA Mansard Insurance Plc., NEM Insurance Plc., Leadway Assurance Company Limited, Coronation Insurance Plc., Cornerstone Insurance Plc., Consolidated Hallmark Insurance Plc, Bastion HMO, and Tangerine Africa. The app is also integrated with trusted payment gateways Paystack and Budpay to ensure smooth and secure transactions.

“We are thrilled to officially go live,” said Oluseyi Ifaturoti, managing director and CEO of Transparency Scape. “Reaching this milestone has been a journey of perseverance, and we are excited to offer our customers peace of mind through a smart, easy-to-use app. Our goal is to be a trusted partner as they navigate the often complex world of insurance.”

Transparency Scape has also partnered with key regulatory bodies, including the National Insurance Commission, NAICOM, Nigerian Insurers Association (NIA), Chartered Insurance Institute of Nigeria, CIIN, The Nigerian Council of Registered Insurance Brokers, NCRIB, to ensure full compliance and uphold the highest industry standards.

“We extend our sincere gratitude to our regulators for fostering innovation within Nigeria’s insurance space,” Ifaturoti added. “We are also grateful to our insurance partners for their trust and for allowing us to integrate their APIs. This has been instrumental to our success.”

Speaking further on the impact of the launch, Olufela Olurin, chief operating officer of Transparency Scape Insurance Brokers Limited, said,

“InsurEase reflects our core values of transparency and trust. By breaking down the barriers to insurance accessibility, we have made it easier for Nigerians to secure the protection they need. Our app simplifies the entire insurance journey, giving users greater peace of mind and security for their future.”

InsurEase is now available for download on the Google Play Store and Apple App Store. For more information about the company, visit the website or follow us on Instagram, Twitter, Facebook, and LinkedIn.

The sector did experience a year-on-year real GDP growth of 2.41% in Q2 2024, up from 1.95% in the same quarter the previous year. However, these numbers only float on the surface of the deeper issues in the healthcare system.

Government expenditure on healthcare continues to lag behind the country’s needs. In 2024, ₦1.23 trillion was allocated to health, representing less than 5% of the proposed ₦27.5 trillion aggregate government expenditure. This is still far from the 15% benchmark set by the Abuja Declaration in 2001.

Private contributions, on the other hand, outweigh government spending, with approximately 3% of Nigeria’s GDP invested in healthcare. This is considerably lower than the average among OECD countries, where healthcare investment is much higher.

For the average Nigerian household, healthcare costs are high, representing about 6% of household spending, with rural areas generally experiencing higher expenditures compared to urban centres. These figures reiterate the growing financial burden on citizens, who often rely on out-of-pocket payments for medical services.

The Broken Healthcare System

Nigeria’s healthcare system has long been underfunded, understaffed, and over-reliant on citizens bearing the cost of care directly. Public hospitals, particularly in rural areas, often lack even basic medical equipment, forcing many to travel to urban centres or abroad for treatment. Nigeria loses over $1 billion annually to medical tourism, as citizens seek quality healthcare services unavailable at home.

The situation is worsened by a shortage of medical professionals. Despite a growing population, the country continues to lose doctors, nurses, and specialists to better opportunities abroad. Over 8,000 Nigerian doctors currently practice in the UK, with many others scattered across Europe, North America, and the Middle East. This brain drain has left the healthcare system woefully understaffed, with a doctor-to-patient ratio far below the World Health Organization’s recommended standard.

In addition to these infrastructure and staffing challenges, healthcare access is highly inequitable. Urban areas are far better served than rural regions, where healthcare facilities are often nonexistent. Even in cities, high-quality care is accessible only to those who can afford it, leaving a significant portion of the population underserved.

Public-Private Partnerships: A Possible Solution for Nigeria’s Healthcare Sector?

Public-Private Partnerships (PPPs) have become potential solutions to some of these challenges. In leveraging private sector expertise and capital, PPPs aim to improve healthcare delivery, financing, and infrastructure. 

These partnerships have been successful in other sectors, such as telecommunications and power, and there is hope that similar collaborations can help reform Nigeria’s healthcare system.

One area where PPPs have already shown promise is in the digitization of healthcare. In Lagos State, a partnership with Interswitch eClat has helped digitize medical records and expand access to health insurance, making healthcare more accessible and affordable for residents. PPPs in pharmaceutical production are also helping to reduce Nigeria’s reliance on imported drugs, thereby lowering costs and improving the availability of essential medicines.

However, PPPs in healthcare are not without challenges. Unlike infrastructure projects, healthcare is a more sensitive sector, where the balance between profitability and public service must be carefully managed. Private companies naturally seek to maximize returns, which can lead to higher fees or services designed for wealthier segments of society. This raises concerns about whether PPPs will truly address the healthcare needs of Nigeria’s poorest and most vulnerable populations, particularly in rural areas.

The State of the Economy and Healthcare Funding Gap

A major challenge for Nigeria’s healthcare sector is its reliance on out-of-pocket expenditures. With household spending on healthcare averaging 6% of total expenses, Nigeria’s healthcare financing remains largely informal. This contrasts sharply with OECD countries, where comprehensive health insurance systems relieve citizens of the financial burden of medical expenses.

Government spending on healthcare also remains super low. At less than 5% of the national budget, Nigeria’s health investment pales in comparison to other sectors and falls well short of the Abuja Declaration target. This chronic underfunding has resulted in dilapidated facilities, low morale among healthcare workers, and inadequate healthcare services. For PPPs to succeed, the government must largely increase its investment in the health sector, both in terms of financial resources and policy reforms.

PPPs and Healthcare Innovation

While PPPs are not a panacea for Nigeria’s healthcare sector challenges, they do offer opportunities for innovation, particularly in the areas of telemedicine and pharmaceutical research.

• Telemedicine: The COVID-19 pandemic accelerated the adoption of telemedicine, and this trend has continued to grow in Nigeria. With increasing internet penetration, telemedicine presents a cost-effective solution for extending healthcare services to remote and underserved areas. By using telehealth platforms, private companies can provide consultations, diagnoses, and even prescriptions without the need for physical infrastructure. Companies like Helium Health have already started to integrate telemedicine and electronic medical records, improving the efficiency and accessibility of healthcare services.
• Pharmaceutical Research and Development: Another area where PPPs could have a changing impact is in pharmaceutical research and development (R&D). Nigeria remains heavily dependent on imported drugs, which increases healthcare costs and reduces access. By investing in local R&D, PPPs could help develop treatments for diseases that disproportionately affect African populations, such as malaria and sickle cell anaemia. This would not only improve health outcomes but also create jobs and stimulate the local economy.

Addressing the Human Resource Issue

One of the most significant challenges facing Nigeria’s healthcare sector is the loss of skilled medical professionals. PPPs could help address this issue by investing in medical training and retention programs. Partnerships that focus on building medical schools, offering competitive salaries, and improving working conditions could slow the exodus of healthcare workers and ensure that Nigeria’s growing population has access to qualified doctors, nurses, and specialists.

Improving working conditions in hospitals, particularly in terms of equipment availability and facility management, is also essential. Many Nigerian doctors leave the country because they are unable to practice in conditions that allow them to provide high-quality care. Addressing these issues will ensure PPPs help retain more healthcare professionals and improve the overall quality of care.

A Timely Check on Nigeria’s Healthcare Sector 

The truism “health is wealth” remains relevant and key;  thus, one cannot start the discussion about Nigeria’s ill-designed and malfunctioning healthcare sector without recognizing its importance. It’s like the proverbial elephant: every chunk is valuable, and no part is wasted. However, before diving into details, we must acknowledge from the outset that the success or failure of this sector is critical to the nation’s overall development.

I think it safe to take my bearings from the thoughts of a former Minister of Labor in Nigeria, who, during the impasse surrounding incessant strikes by Nigeria’s medical professionals, asserted that Nigeria has enough medical practitioners to export abroad. This former doctor-turned-politician went a step further, claiming that exporting these excess medical professionals would, in the long run, generate foreign earnings for the country. While I wouldn’t say he was entirely right or wrong, let the figures decide who benefits from their exit.

As of my last count, the emigration of medical professionals from Nigeria incurs significant monetary losses, estimated between $500 million and $1 billion for training costs alone if 10,000  doctors leave. Additionally, a shortage of approximately 200,000 healthcare workers leads to increased healthcare costs, potentially exceeding $1 billion annually (WHO). This brain drain also affects economic productivity, with poor health reducing GDP by up to 10%. While remittances from emigrants reached about $24 billion in 2021, the long-term impacts of a declining healthcare system may overshadow these benefits (World Bank, 2021). Overall, Nigeria faces substantial financial challenges from this trend.

What Would a Health Insurance Scheme Offer Nigerians?

1. Increased Access  

Health insurance can significantly improve access to medical services. As of 2020, only about 5% of Nigeria’s population was covered by health insurance (National Bureau of Statistics, 2020), limiting access to necessary healthcare services. Expanding insurance coverage can help more individuals seek medical attention without financial constraints.

2. Financial Protection 

Catastrophic health expenditures can push families into poverty. According to the World Bank, approximately 70% of Nigerians face out-of-pocket health costs that can lead to financial distress (World Bank, 2021). A robust health insurance scheme can alleviate this burden, providing a safety net for families during health crises.

3. Preventive Care  

Health insurance schemes often promote preventive care. Studies show that countries with higher insurance coverage see lower rates of preventable diseases. For example, Nigeria has high rates of diseases like malaria and maternal mortality, which was approximately 512 deaths per 100,000 live births in 2019 (UNICEF, 2019). Insurance could incentivize preventative measures like vaccinations and regular health check-ups.

4. Quality of Care

With insurance coverage, healthcare providers may be motivated to improve service quality to attract insured patients. A 2018 survey indicated that only 38% of Nigerians were satisfied with the quality of healthcare services (Nigerian Health Review, 2018), underscoring the need for improvement. Insurance schemes can provide the necessary funding to enhance facilities and services.

5. Sustainable Funding

A well-structured health insurance system can provide stable funding for healthcare services. According to the National Health Insurance Scheme (NHIS), the goal is to increase health insurance coverage to 30% by 2025 (NHIS, 2020). This increased coverage can lead to more consistent funding streams for hospitals and clinics, improving overall service availability.

6. Public Health Initiatives

Health insurance schemes can facilitate public health initiatives by ensuring funds are allocated for preventive measures and health education. The Nigerian government allocated about 5% of its budget to health in recent years (Budget Office of the Federation, 2021), but increased insurance coverage could help supplement these funds, enhancing initiatives to combat diseases like HIV/AIDS, which affects over 1.9 million Nigerians (UNAIDS, 2020).

However, the public-private synergy also faces the twin problems of commitment from the federal government regarding the sector and an avalanche of stereotypes that have plagued the insurance industry. 

In a recent webinar organized by Clinitouch, the discussion explored how remote patient monitoring (RPM) could reduce costs for health insurers in Nigeria and Ghana. Clinitouch’s technology connects patients with clinical teams, enabling proactive management of non-communicable diseases (NCDs) and reducing costly hospital admissions. For instance, managing hypertension via RPM could lower annual costs from over $190 to $76.32 per patient, resulting in significant savings.

Key takeaways from Clinitouch’s webinar included insights from Dr. Noel O’Kelly, John Adesioye, and Bruce Adams, who emphasized the importance of public awareness, proactive patient management, and customer loyalty in enhancing service quality and competitive advantage for insurers. Engaging patients and clinicians is crucial for the successful adoption of RPM.

If we envision a reversal in the current trend of turning the Western world into the “Mecca” or “Jerusalem” of health, then creating the right environment through people-centered policy and investment-conscious actions is key. The trend of health service providers, such as pharmaceutical companies, leaving the shores of Nigeria is concerning.

Regarding the stereotypical perception of the insurance sector in Nigeria, although the Nigerian government has set the pace through the NHIS to cater to the health of the people, unfortunately, the NHIS only addresses civil servants, who constitute less than 2% of the population. The majority of those working in the informal sector are not captured by these provisions.

The truth is, with our teeming population, we cannot rely exclusively on government provisions for health; traditional ideas of meeting our health needs may not be the solution. What is evident from the discussions surrounding public-private initiatives in the health sector and the role of insurance is that government input is critical for success. While the maxim that “government has no business in business” holds some truth, it is undeniable that the government needs to create an environment for business to thrive.

For record-keeping, in 2022, Nigerians reportedly spent around $800 million on medical treatments abroad, highlighting persistent challenges in the domestic healthcare system. This trend continued in 2023, with expenditures exceeding $1 billion, further underscoring the difficulties faced by local healthcare infrastructure. As many individuals seek better medical services overseas, this financial outlay reflects an urgent need for improvements within Nigeria’s healthcare sector (The Guardian, 2022; Punch, 2022; The Guardian, 2023).

Just like other critical issues—security, economy, and politics—health ranks the highest. The truth is that no government has been able to navigate economic issues single-handedly; the same applies to health-related challenges.

For instance, the number of employees on the payroll of multinationals such as Apple, Nvidia, Microsoft, and Meta, all based in the United States, is overwhelming. The government must provide the necessary environment for them to thrive—a situation that may not be fully obtainable in Africa’s most populous country, Nigeria, where the likes of Dangote, Elumelu, and other private enterprises are front-liners in providing not just services but employment opportunities beyond what any government agency offers.

This scenario demonstrates that massive investment from the private sector, particularly through health insurance packages, is key to addressing these challenges. Although a government may not have any  business, in business, But it does need to create an environment in the Economy.

Outlook and Recommendations

Public-Private Partnerships offer a promising, albeit partial, solution to Nigeria’s healthcare sector challenges. Lagos has set an example with its successful PPP initiatives, but these models need to be adapted and expanded to other states, particularly in the Northern and rural regions where healthcare access is weakest.

To ensure that PPPs have a lasting impact, the government must play a more active role in healthcare reform. This includes increasing public investment, enforcing regulations that ensure service quality and affordability, and creating incentives for private companies to invest in underserved areas. Tax breaks or subsidies for private investors who build hospitals or medical research facilities in rural areas could help balance profitability concerns with public health needs.

Ultimately, while PPPs can drive short-term improvements, a more comprehensive approach is needed. The government must prioritize health insurance reform, reduce out-of-pocket expenses, and invest in the infrastructure and human capital necessary to build a healthcare system that works for all Nigerians.

This agreement between Interswitch and OGSHIA represents a significant milestone in the ongoing efforts to improve the accessibility and affordability of healthcare services within the state.

Through this collaboration, OGSHIA aims to amplify the scope and efficiency of its health insurance transactions, streamline processes and foster financial inclusivity.

The integration of Interswitch’s cutting-edge multi-channel payments system will empower residents to make secure and convenient payments across various platforms, thereby elevating the overall healthcare experience in Ogun State.

Speaking on the partnership, Osasere Atohengbe, Vice President, Government & Social Services Ecosystem, Interswitch, said;

“We are thrilled to collaborate with OGSHIA in our shared commitment to drive accessible and affordable healthcare in Ogun State. Interswitch’s innovative multi-channel payments solution is poised to revolutionize the way health insurance transactions are conducted, ultimately contributing to the realization of OGSHIA’s noble vision. As we integrate these services, we are further enabling the state’s health system to be inclusive and more responsive to the needs of the people, now and in the future.”

Speaking on the essence of the partnership, Dr. Tomi Coker, the Honourable Commissioner for Health, Ogun State, said;

“We are deeply encouraged by this partnership between OGSHIA and Interswitch. This initiative is a step in the right direction for our state’s healthcare infrastructure as it aligns with our mission to provide every citizen with medical services without financial strain.”

“Harnessing Interswitch’s proficiency in digital payment solutions will significantly enhance the efficiency of the health insurance transaction process. This solution ensures that our citizens can effortlessly and securely settle payments for healthcare services. We are eliminating economic barriers to healthcare, advancing one seamless payment at a time. We firmly believe that the prosperity of our state is intricately tied to the well-being of our people”, she added.

Dr. Afolabi Dosunmu, Executive Secretary of OGSHIA, also commented on the partnership, stating, “OGSHIA remains focused on enhancing the health and economic stability of our people through comprehensive and efficient healthcare insurance services. This innovative partnership with Interswitch marks a transformative step in our journey to enhance healthcare for every resident of Ogun State in a way that is accessible, affordable, and reliable.”

The introduction of multi-channel payments goes beyond technological advancement; it represents hope in action.

This advancement guarantees that individuals no longer need to confront the dilemma of deciding between their health and their financial well-being.

With a steadfast commitment to continuous improvement and innovation, Interswitch is positioned as a key player in shaping a future where quality healthcare is not just available, but easily accessible in Nigeria.

The company continues to leverage technological solutions to solve pertinent issues in various industries, highlighting its dedication to catalyzing growth and development in Nigeria and beyond.