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Cost of lab tests increased by 100% in Nig.

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By Abraham Adekunle

Rising prices in the economic landscape of lab tests in Nigeria.

In the pursuit of prioritizing the well-being of its citizens, the Nigerian government finds itself at the crossroads of addressing the intricate financial dynamics surrounding common laboratory tests. This comprehensive exploration seeks to unravel the complexities, shedding light on the impact of skyrocketing costs and the subsequent consequences on healthcare accessibility and affordability. While much attention is given to the rising costs of lab tests, it is imperative to acknowledge the indispensable clinical benefits that these tests bring to the table. In Nigeria, laboratory tests are pivotal tools for making informed clinical decisions, playing a multifaceted role in disease prevention, early detection, accurate diagnosis, treatment prescription, and overall proactive health management.

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Inflationary pressures have emerged as a significant force behind the escalating costs of laboratory tests in Nigeria. The latest National Bureau of Statistics (NBS) Inflation report indicates a surge in the inflation rate to 28.92% in December 2023, up from the previous month’s 28.20%. These inflationary trends have direct implications on the pricing dynamics of lab tests. The determination of lab test costs involves considering three distinct types of costs within a laboratory setting: fixed, semi-variable, and variable. Fixed costs, such as geographical variations in rent and equipment insurance, remain constant and are independent of testing volume. Variable costs, like reagent costs, fluctuate directly with testing volume, while semi-variable costs, including machinery repairs, experience fluctuations corresponding to laboratory activity levels.

Comparing the costs of common lab tests in Nigeria.

Several common laboratory tests are routinely conducted in Nigeria, each with its own financial implications. Examining the estimated costs of these tests in 2024 compared to 2022 provides a glimpse into the economic challenges faced by individuals seeking healthcare services. The costs of common laboratory tests in Nigeria have experienced significant increment between 2022 and the projected values for 2024. The Malaria Parasite Test, essential for diagnosing a prevalent health concern, is expected to range between ₦2300-₦5500 in 2024, compared to the earlier costs of ₦1000-₦3000 in 2022. Similarly, the pricing dynamics for the Complete Blood Count test are anticipated to rise, with estimates ranging from ₦2700-₦6800 in 2024, compared to the previous costs of ₦2000-₦5000 in 2022. The Blood Glucose Test, crucial for monitoring diabetes, is projected to cost between ₦1000-₦3800 in 2024, reflecting an increase from the previous range of ₦500-₦2000 in 2022.

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Urinalysis, an essential diagnostic tool, is expected to witness cost variations from ₦3100-₦4700 in 2024, compared to ₦1500-₦3000 in 2022. The HIV Rapid Test, offered free in public hospitals, may see an increase in costs from ₦3700-₦5500 in 2024, up from ₦1500-₦4200 in 2022. The BHCG (Pregnancy) test, vital for maternal health, is projected to range from ₦2500-₦5400 in 2024, showing an increase from ₦1800-₦3000 in 2022. Stool Microscopy, Liver Function Test, Kidney Function Test, Total Cholesterol, and WIDAL (Typhoid Test) are also expected to experience cost fluctuations between 2022 and 2024, presenting challenges and considerations for individuals seeking these essential healthcare services. The accessibility of lab testing facilities in Nigeria exhibits significant variations across regions, with urban cities enjoying superior access compared to rural areas.

Bridging the gap between accessibility and affordability.

Infrastructure limitations in the northern regions contribute to uneven distribution and disparities in healthcare resources, exacerbating the challenges faced by Nigerians in obtaining affordable lab tests. The uneven distribution of healthcare facilities is compounded by the reliance on out-of-pocket payments, as both the federal government and state governments fall short in funding the health sector. Despite the 2001 Abuja declaration committing to allocating 15% of the budget to the health sector, the current allocation is less than 10%. Lagos state, despite having the highest allocation, plans to allocate only 6.75% of its 2024 budget to health, highlighting persistent funding challenges. In response to the pressing issues of accessibility and affordability, the Nigerian government has implemented various healthcare initiatives. Key among them are the National Health Insurance Authority (NHIA, formerly NHIS) and targeted programs offering subsidized or free healthcare services to vulnerable populations.

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Despite the NHIA’s universal coverage targets, its reach remains below 5%, leaving an alarming estimate of 120 million Nigerians without health Insurance coverage. To address this gap, the National Health Sector Investment Initiative has been approved, with the Nigerian Sovereign Investment Authority partnering with the Federal Ministry of Health to expand healthcare services through private sectors participation. The agreements aim to enhance the capacity of diagnostic and primary healthcare centers to provide advanced medical services at subsidized rates. Engaging with the public provides a nuanced understanding of how Nigerians navigate the financial landscape of common laboratory tests. Out of five individuals interviewed, only one had health insurance, highlighting the prevalence of out-of-pocket payments for healthcare services.

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One respondent emphasized the variable nature of their experience, stating, “It depends on the tests; some are affordable, but some are not.” Another described the process as straightforward, explaining, “If I go to the pharmacy or see a doctor and they recommend tests, I’m directed to a lab, and I pay there.” For those paying out of pocket, financial considerations impact their decisions. One respondent reflected, “If the test is expensive and the issue isn’t urgent, I may opt to delay. Cost influences my choices.” A licensed medical lab scientist underscored the critical role of government intervention, stating, “The government needs to exert more efforts in ensuring a broader reach of health insurance among Nigerians. Making healthcare more affordable is achievable through widespread insurance coverage. Introducing policies mandating schools to insure students and offices to insure workers could be pivotal steps forward.”

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