Nigeria's healthtech ecosystem experienced unprecedented growth following the COVID-19 pandemic, with 65 new startups launched between 2020 and 2025, according to the State of Healthtech in Nigeria 2026 report. The comprehensive study was curated by TechCabal Insights, Digital Health Nigeria, and the Clinton Health Access Initiative.
The surge reached its peak in 2020, when 17 healthtech startups launched — the highest number recorded in a single year within the ecosystem. Today, Nigeria operates 128 active healthtech startups spanning telehealth, healthcare analytics, digital supply chains, e-pharmacy, and digital healthcare financing sectors.
Pre-Pandemic Struggles with Digital Healthcare Adoption
Before COVID-19, Nigeria's healthtech sector faced significant obstacles including limited digital infrastructure, poor internet access, high income inequality, and low digital literacy rates among potential users. Many founders struggled to convince users that healthcare services could be delivered digitally.
"When we started in 2017, telemedicine was still poorly understood, infrastructure was limited, there were no cohesive policies or guidelines, and trust in digital healthcare was low," said Funmi Adewara, Founder and CEO of Mobihealth, a telemedicine platform. "We had to educate patients, regulators, partners, and even healthcare professionals."
Founders reported having to completely rethink their product distribution strategies as users remained hesitant to download standalone healthcare applications. The reluctance to embrace digital health solutions persisted until the pandemic fundamentally altered user behavior and market dynamics.
COVID-19 Transforms Digital Health from Luxury to Necessity
The pandemic created an environment where digital healthcare transformed from optional to essential almost immediately. Lockdown restrictions complicated hospital visits while fear of physical contact increased demand for remote consultations, digital prescriptions, medication delivery, and at-home testing services.
"Before COVID, healthtech was a nice-to-have," explained Rest Essence, co-founder of MedWaka, a healthtech startup launched in 2021. "But post-COVID, it became a must-have. You could no longer step outside. So, the ecosystem completely changed. We got used to an entirely new world, and so it became the norm."
Sustainability Challenges Despite Growth
Despite the remarkable growth in startup launches, the ecosystem faces sustainability challenges. The report reveals that Nigeria's healthtech sector currently includes 40 inactive startups, with 97% of these failed ventures founded before the pandemic.
The post-pandemic environment presents new obstacles as startups must navigate weak infrastructure, low insurance coverage rates, and declining funding availability after the initial pandemic urgency subsided. These factors create a more challenging operational landscape for healthtech companies seeking long-term viability.
The data suggests that while COVID-19 successfully catalyzed startup creation and digital healthcare adoption, translating this growth into sustainable business models remains an ongoing challenge for Nigeria's expanding healthtech ecosystem. Success will depend on companies' ability to address underlying infrastructure limitations and build trust among users who may have initially adopted digital health solutions out of necessity rather than preference.