Healthcare Financing and Economic Performance in Nigeria

This study provided the relationship between healthcare financing and economic performance from 1986-2023 in Nigeria. Specifically, the study focused on the role of government capital and recurrent expenditure in health on gross domestic product. This study was based on two theoretical concepts, namely, the Human Capital Theory and the Keynesian Theory of Public Expenditure. The research design adopted ex post facto design as it is only applicable in a historical form of research where the researcher is not able to manipulate the variables. Data that were used in this study were obtained from statistical bulletins of Central Bank of Nigeria and World Bank. The data used for the research are secondary time series data. The descriptive method, unit root, Johansen co-integration and parsimonious ECM techniques were used for this study at 5% level of significance. The unit root result indicated that all the variables were stationary at first difference and require the Johansen co-integration that validate the presence of long run form among the variables. The parsimonious ECM result revealed that that Government recurrent spending in health have a statistically insignificant and negative effect on gross domestic product while government capital spending in health have positive and statistical significance influence on gross domestic product. The study concluded that government capital expenditure in health is the significant aspect of healthcare financing that, promotes the gross domestic product of Nigeria. The study recommended the Federal government of Nigeria to implement performance-based budgeting in the healthcare sector, conduct health workforce audit to reduce wastage.