An Empirical Analysis of the Impact of Government Health Expenditures on the Performance of the Health Sector in Nigeria

Abstract

Purpose of the Study: The purpose of the study is to examine whether government health expenditures have an impact on the health sector performance in Nigeria for the period (1979-2019). Methodology: The study employs the expo facto research design. The annual time series data were sourced from World Development Indicators (WDI) and the Statistical Bulletin of the Central Bank of Nigeria (CBN) for several years. The dynamic ordinary least square (DOLS) estimation method is employed to measure the coefficient of the parameters to test the four hypotheses developed. Main Findings: The findings of the study indicate that capital health expenditure and recurrent health expenditures are positively related to the performance of the health sector proxy by life expectancy rate but statistically insignificant. However, capital health expenditure is statistically significant to life expectancy. Research Implication: It was recommended that priority need to be placed on government capital spending on health such as building and equipping of health centres in every community to enhance accessibility to health centres in Nigeria. The novelty of the study: There is a need for an adequate mechanism to be put in place by the health sector to check the stealing of public funds and punish those who misuse and divert such funds. This can promote the generation and prudent utilization of revenue to equip our various health centres ahead of eventualities like the COVID-19.