The Nigerian Naira is expected to depreciate significantly, reaching an exchange rate of N1,993 per US dollar by 2028.
This forecast signals potential turbulence for Nigeria's economy, particularly impacting sectors reliant on imports, such as the medical devices market.
The anticipated devaluation poses substantial challenges. As the Naira weakens, import costs for medical devices are set to rise, further straining consumer purchasing power. Despite hopes for economic recovery, the sector faces operational hurdles and demand constraints.
Fitch forecasts a compound annual growth rate (CAGR) of 10.8% in local currency terms and 9.6% in US dollar terms from 2023 to 2028. By the end of this period, the market is projected to be valued at N171.1 billion, equivalent to USD344.7 million.
The financial pressures have already led to significant corporate exits, with major companies like Sanofi and GlaxoSmithKline withdrawing from the Nigerian market.
In response to these economic challenges and high inflation rates, President Bola Ahmed Tinubu issued an executive order in June 2024 aimed at reducing medical service costs, a move intended to alleviate some of the financial burdens on consumers.
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