Measuring the Welfare Impact of Public Expenditure on Primary Healthcare Services in Rural Nigeria: A Benefit-Incidence Approach

Abstract

In this study, attempt has been made to measure the welfare impact of government expenditure on primary healthcare services in rural Nigeria employing the benefit-incidence approach. To do this data were generated from the various healthcare centres located in Ika South Local Government Area from a combination of primary and secondary sources. On the basis of the sample selected, households were decomposed into non-poor, moderately poor and core poor. An analysis of the data generated depicts that the non-poor benefited more from the public primary healthcare services. The low benefit accruing to the poor group is attributable to their relative inaccessibility to access public healthcare in terms of drugs and consultatison. There is therefore the need for proper implementation of primary healthcare policies to make them more pro-poor. In this regard, this paper recommends that local governments should collaborate with community for drug revolving scheme. This is to enable the poor in the rural areas have more  access to genuine drug at affordable price. Most importantly, there should be restructuring in public health expenditure pattern, focusing more on primary healthcare since this will benefit more of the poor and vulnerable in the society. By so doing, their welfare would be greatly improved.

Keywords: Public expenditure on healthcare services, welfare impact, benefit-incidence analysis

JEL classification: C2; C3; E6