Investing In Caregivers’ Lodgings Near Public Hospitals

As Nigeria’s public hospitals struggle with overcrowding, rising costs and overstretched facilities, health experts and investors are increasingly pointing to an overlooked opportunity: purpose-built caregivers’ lodgings located close to major public hospitals.

Nigeria’s tertiary hospitals attend to more than 20 million patients annually, according to estimates collated from the Federal Ministry of Health and teaching hospital records. Health workers say that for every admitted patient, at least one caregiver is present, often staying for days or weeks. Yet most public hospitals provide no formal accommodation for this group.

Across the country, relatives of patients who serve as informal nurses, meal providers and patient advocates sleep in corridors, hospital compounds or nearby streets, particularly in major centres such as Lagos, Ibadan, Abuja, Enugu and Benin.

“At teaching hospitals, caregivers are an invisible population. In some wards, caregivers outnumber patients at night. This affects hygiene, security and even recovery outcomes,” said a consultant physician at the Lagos University Teaching Hospital (LUTH), Dr. Kemi Solanke.

The Lagos University Teaching Hospital (LUTH) admits approximately 50 new patients daily, which translates to over 18,000 yearly admissions annually, hospital sources say. Records indicate that the University College Hospital in Ibadan admits over 150,000 in-patients, including accident victims, every year. With average hospital stays ranging from 7 to 21 days, analysts estimate that hundreds of thousands of caregivers pass through Nigeria’s major public hospitals every year.

Healthcare analysts argue that investing in low-cost caregivers’ hostels could address both social and operational challenges while opening a new niche in healthcare-linked real estate.

Health economist, Dr. Funmilayo Yusuf, said the numbers support the business case. “Hospitals generate constant, year-round demand. Even if just 30 per cent of caregivers use paid lodging at N2,000–N5,000 per night, facilities near large hospitals can achieve high occupancy and steady cash flow,” she said. She added that, similar models in India show occupancy rates of 60–80 per cent, even at low price points, due to continuous patient inflow.

Hospital administrators also cite operational costs. A senior official at UCH, Ibadan, who requested anonymity, said caregivers occupying corridors create sanitation and safety risks. “During peak periods, infection-control compliance becomes harder. Emergency access routes are often blocked. Purpose-built lodging nearby would significantly improve hospital efficiency,” the official said.

Public health data further underscores the issue. Nigeria has less than 0.5 hospital beds per 1,000 people, according to the World Health Organisation, far below the global average of 2.9. Experts say this shortage indirectly pushes caregiving responsibilities and associated costs onto families.

Beyond healthcare outcomes, economists say the investment potential is compelling. Nigeria has over 60 teaching hospitals and federal medical centres, most located in high-density urban areas. Affordable lodgings priced modestly could attract thousands of users monthly.

Real estate analyst, Kunle Ojo, described the model as recession-resistant.“Healthcare demand does not depend on tourism or consumer confidence. Caregiver lodging offers predictable occupancy, lower marketing costs and stable returns, while creating jobs in security, cleaning and food services,” he said.

For caregivers, the impact would be immediate and personal. “When my daughter was admitted in Abuja, I slept outside for two weeks,” said Mrs. Grace Okeke, a trader from Anambra State. “I spent over N40,000 just on food and transport. A nearby, affordable place to sleep would have reduced the stress.”

Public health advocates estimate that Nigerian households already bear over 70 per cent of healthcare costs out-of-pocket, according to National Health Accounts. They argue that, informal caregiving expenses such as food, shelter and lost income remain largely undocumented but significant.

Advocates are now calling for government support through land concessions, tax incentives and planning fast-tracks to attract private investors. “This is infrastructure, not charity. Caregivers are part of the care chain. Supporting them reduces hidden costs across the system, said Dr. Adetokunbo Lawal

However, challenges remain. Investors point to unclear hospital governance, security concerns and the absence of a national policy framework. There are also fears that without regulation, pricing could exclude low-income families.

Health policy expert, Tunde Adebola, said formal recognition is overdue. “With Nigeria’s population projected to hit 227 million by 2030, pressure on public hospitals will only increase. Caregivers’ lodgings are a low-cost intervention with high social returns,” he said.

As Nigeria searches for innovative ways to strengthen healthcare delivery without expanding public spending, caregivers’ lodgings offer a rare convergence of social impact, economic viability and health-system efficiency, one stakeholder says the country can no longer afford to ignore.