THE IMPACT OF PUBLIC HEALTH EXPENDITURE ON HEALTH INDICATORS IN NIGERIA

Abstract

This study investigates the relationship between public health expenditure and health indicators in Nigeria. The study utilized the Error Correction Mechanism (ECM) framework to capture the plausible short-run effects of public health expenditure on health indicators (proxy by life expectancy and under-5 mortality rate) in Nigeria from 1985 to 2019. The results revealed a long-run relationship between health indicators, health expenditure, gross domestic product (GDP) per capita, carbon dioxide emission, literacy level, and urban population. The results also indicate that GDP per capita and literacy level positively affect health indicators while urban population and carbon dioxide emissions impacted negatively on health indicators. Furthermore, the results revealed that the various speeds to adjustment are significant and low. The study concludes that expenditure on healthcare is vital for improving the quality of life in Nigeria and recommends that the government should increase health expenditure, control over-crowding in urban centers, reduce inequality, and promote the use of green energy.