DISAGGREGATING HEALTH SPENDING AND LIFE EXPECTANCY: THE CASE OF NIGERIA

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Abstract
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Health financing is crucial for economic productivity and the life expectancy of a nation’s labor force. However, Nigeria faces numerous economic factors that threaten its healthcare sector starting from a non-transparent fiscal autonomy leading to a rise in public health expenditure. This has been a significant threat to the Nigerian healthcare sector. From 2016 to 2021, the increase has been unhidden, possibly due to health insurgencies and governance issues. Despite this, fiscal allocation has decreased interest in government health financing, resulting in increased household health expenditures. This hinged the interest of the study to ascertain the disaggregated healthcare expenditures that caused life expectancy differentials in Nigeria between 1990 and 2021 finding a mixed integration at all levels, with life expectancy causing government health expenditure and government health expenditure causing out-of-pocket health expenditure. The study recommends continuous and increased government health spending to enhance life expectancy, boost productivity, and prepare Nigeria for sustainable development by 2030.

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