Impact of Public Health Expenditure on Life Expectancy in Nigeria

Abstract

Health is wealth. For mankind to live the expected life standard, it requires a sustainable good healthcare condition. For this, understanding the influence of public health expenditure on life expectancy in Nigeria becomes imperative. The study therefore examines the impact of public health expenditure on life expectancy in Nigeria utilizing annual data from 1990 to 2023. Data
were analyzed using Johansen Cointegration and Vector Error Correction Mechanism (VECM). The variables adopted for the study were public health expenditure (PHEX), life expectancy (LEXP), per capita income (PCIN), population growth rate (POPGR) and
unemployment rate (UNEMR). The result revealed that in the long run, PHEX and PCIN have a positive relationship with LEXP, whereas POPGR and UNEMR revealed a negative relationship with LEXP. In the short run, PHEX and PCIN were statistically significant in
explaining LEXP, while POPGR and UNEMR were insignificant in explaining LEXP. UNEMR revealed a negative relationship with LEXP in the short run, while all other variables revealed a positive relationship with LEXP in the short run. The speed of adjustment shown by
the Error Correction Mechanism (ECM) was approximately 35 per cent. Findings from the study showed that life expectancy in Nigeria increases as public health expenditure increases. Based on the results, the study recommends the need for continual allocation of funds into the health sector as it shows a positive relationship between public health expenditure and life expectancy in Nigeria.