Inflation and the Demand for Healthcare in Nigeria: the implication of the coping strategies among fixed-income earners in Niger State

Nigeria has witnessed a growing trend of inflation in recent times. The inflation was aggravated by the removal of fuel subsidy during the second quarter of 2023. Prices of goods and services including food and healthcare skyrocketed. Niger state, being one of the states in the country with high number of fixed-income earners, notably civil servants, might be worst hit by the trend. However, despite having poor health insurance schemes, there is little knowledge about the derivers of demand for healthcare among fixed-income earners in the state and how the coping strategies adopted by the fixe-income earners during inflation might affect the health of their children. This study uses a sample of 1140 fixed income earners across the state and applied descriptive statistics, logistic regression and ordered logit models to analyze the data. The study categorized the inflationary period into three webs. The descriptive result shows that during the first web, most of the fixed-income earners borrowed, solicited for assistance from friends and relatives, or sold their assets to meet up with their health needs. During the second web, most of the respondents reported neglecting health for food, by skipping medications, patronizing quack medical centers or resorting to traditional medical options. In the third web, the result indicated that health behaviors in the previous web persist and in addition, a proximate determinant of health, such as food was undermined. The result of the logistic regression shows that demand for healthcare among the study group is influenced by medical cost, income, low cost of alternative medication, insurance cover, episode of sickness and inflationary web. The result of the ordered logit regression revealed that opting for alternative medication and reducing food quality reduce the quality of health of the children under study, but older children and those without history of poor physical health are absolved. The study suggests that government should provide emergency support to the affected families, strengthen the insurance industry and review the salaries of civil servants to enable them cope with the new economic realities.