The Myth and Reality of Government Expenditure on Primary Health Care in Nigeria: Way Forward to Inclusive Growth

Abstract

The health sector remains a vital tool for sustainable development of any nation and therefore investment in this sector cannot be overemphasized. The present state of Primary Health Care (PHC) system in Nigeria is alarming, with only about 20% out of the 30,000 PHC facilities relatively distributed throughout the 774 Local Government Areas (LGAs) across Nigeria working partially. This study examines government expenditure on primary health care in Nigeria as well as its relations to real national output within the period 1980 to 2015 using secondary data and the Ordinary Least Square (OLS) econometric technique. The results of the model used revealed government health expenditure to be efficacious for economic growth, and for the well-functioning of primary health care in Nigeria. Nonetheless, such efficacy duly was also understood to be limited in three select aspects: funding/financing strategy, personnel/manpower quality and mobilization, and implementation framework. The paper, in conclusion, attests to the rationale that money spent wisely on capital health expenditure pays off well in both short-run and long-run for individuals, the society and nation at large.