Abstract:
Nigeria faces a persistent paradox: despite dedicating significant resources to healthcare,
health sector growth and population health outcomes remain abysmal. in order to uncover
potential deficiencies and inform future policy adjustments. This study assessed the impact of
government expenditure on the health sector in Nigeria (1990–2022). The study made use of
ex-post facto research and time series data. Autoregressive Distributed Lagged (ARDL) and
Error Correction Model (ECM) method were used to examine the short-run and long-run
impact and relation between health capital expenditure (HCE), health recurrent expenditure
rate (HRE), per-capita income (PCI), and the health sector (proxied with life expectancy) in
Nigeria. The study reveals that health capital expenditure (HCE) and health recurrent
expenditures (HRE) with values of 0.084677, 0.029913, and probability values of 0.019 and
0.0000, respectively, were found to have a positive and significant impact on the health sector
in Nigeria with a value of at a 5 percent significant level in the long run, but in the short run
they have a negative, positive, and insignificant impact on the health sector, respectively. On
the other hand, per capita income has a positive and significant impact in the short run, while
with a value of 0.00269 and a probability value of 0.0089, it has a negative and significant
impact in the long run on the health sector in Nigeria at a 5 percent significant level. Therefore,
the study recommended that the government should prioritise allocating funds for
infrastructure development, medical equipment procurement, and healthcare facility
expansion. These investments will have a lasting positive impact on the health sector's capacity
and quality of care. The government should strike a balance between addressing immediate
needs through recurrent expenditures and investing in long-term health capital to ensure
sustainable progress. The government should implement policies that promote economic
growth, reduce poverty, and ensure equitable income distribution. By addressing these
underlying factors, the government can contribute to improving overall health outcomes in the
long run.
