An assessment of the contribution of healthcare expenditure to life expectancy at birth in Nigeria

Abstract

This study assessed the contributions of the healthcare expenditure to life expectancy at birth in Nigeria for a period of 18 years (2000–2017). The study adopted an exp post facto research design using time series data that were sourced from the World Bank annual report on the human development indicators. Robust least squares regression was adopted to estimate the model and test the study hypotheses. Domestic general government health expenditure, out-of-pocket payment and external health expenditure had respective significant positive effects on life expectancy in Nigeria for the period under review. Specifically, when other variables are held constant, a $1% increase in the domestic general government health expenditure would lead to 6% increase in life expectancy at birth in Nigeria. Similarly, a $1% increase in out-of-pocket health expenditure would lead to 63% enhancement in life expectancy. Moreover, 11% improved life expectancy at birth will depend on a 1% increase in external health expenditure. Life expectancy in Nigeria was significantly influenced by the healthcare system funding sources for the past 18 years (2000–2017). However, out-of-pocket payment had the most significant positive effect on life expectancy in the country for the period under review.