Global Health Security: An Evaluation of Public Health Expenditure, Health Status and Economic Development in Nigeria

Abstract

This chapter examines the intersection of public health expenditure, health status, and economic development in Nigeria and their implications for global health security. Drawing on a comprehensive dataset spanning the period, 1981-2021, the study utilizes a simultaneous equation model, employing three-stage least squares for data estimation. We developed an innovative composite economic development index (EDI) that integrates the Seers’ Three-Pillars Model of Development encompassing poverty, inequality, and unemployment using principal component analysis (PCA). Additionally, the study crafted a health status index, utilizing indicators such as infant, under-five, maternal mortality rates, and crude death rate. Utilizing PCA allows for a comprehensive evaluation of economic development that encompasses both socio-economic and health dimensions. Other control variables used were adopted from the six WHO health system building blocks. Findings reveal bidirectional causal relationships between public health expenditure and health status, with a unidirectional causal relationship observed from health status to economic development. There is no direct causal link between public health expenditure and economic development, indicating an indirect impact through health status. This inferred that the impact of public health expenditure on economic development works through the health status channel. Policy recommendations include increasing budget allocations to health sector, subsidizing health services, and addressing poverty, inequality, and unemployment issues by improving health infrastructure, income levels, enhancing equitable healthcare accessibility and affordability, bolstering human resources for health in the healthcare sector and reliable power generation. These interventions are essential for fostering sustainable and inclusive economic development in Nigeria, enhancing the country’s resilience to health crises, reducing vulnerability to mortality rates and diseases, thereby contributing to global health security efforts.