Determinants of Government Health Expenditure in Nigeria (1980-2018)

Abstract

Abstract

Investment in the health sector will enhances productivity of workers physically and mentally which will bring about a higher contribution to the economic growth and development of the country. The Nigerian government over the years has allocated a huge amount of money to the health sector but the huge amount of money fails to address the problem in the sector. However, the paper examines the determinants of Government health expenditure in Nigeria between 1980 and 2018. The objective of the paper is to examine the variables that determine government health expenditure in Nigeria. The paper adopt Johansen Co-integration analysis and parsimonious error correction model as the estimation techniques and the results shows that there is long-run relationship between total Government health expenditure and all the explanatory variables. Therefore, the paper recommends that Government budgetary allocation to the health sector should be increased to 15% of the government’s annual budgetary allocation to the health sector and that Primary health care services which is the closest to the people should be given priority in other to give the common man an affordable healthcare facility. Finally, the paper concludes that the determinants of government health expenditure in Nigeria are total population above 65years, Tuberculosis, sickle-cell Anemia, HIV-AIDS, Malaria, High Blood pressure and Diabetes.