Nigeria's health sector has witnessed significant shifts over the past decades, with private hospitals emerging as critical players in healthcare delivery. While private hospitals have filled gaps left by an overburdened public health system, they also face considerable challenges, including limited access to credit, inadequate investment in medical infrastructure, weak regulatory oversight, and perceived exorbitant costs. This paper explores the dual role of private hospitals in both improving healthcare quality and exacerbating healthcare inequalities in Nigeria. Using a mixed-method approach, data was gathered through interviews with healthcare professionals and patients, as well as secondary analysis of national healthcare statistics. The findings indicate that although private hospitals have positively impacted healthcare delivery by reducing pressure on public facilities and providing specialized services, they have also deepened healthcare inequities, with only affluent segments of the population able to access their services. This study recommends policy interventions to improve regulatory frameworks, enhance access to institutional credit for private healthcare providers, and address cost barriers to ensure equitable healthcare access in Nigeria.