Health Expenditure, Health Outcomes and Economic Wellbeing in Nigeria: A Time Series Analysis

Abstract

As Nigeria strives to improve the health and well-being of its population, understanding the relationship between fiscal policy and health outcomes becomes paramount. Fiscal policies, such as taxation, government spending, and expansionary measures, have the potential to shape healthcare accessibility, quality, and overall health outcomes. In light of the foregoing, the study explores the impact of fiscal policy on health outcomes in Nigeria between 1990 and 2021, shedding light on the dynamic interplay between economic decisions and population health. Using the Two-Stage Least Squares (2SLS) estimation, the result revealed that fiscal policy has a significant impact on longevity and have significant positive impacts on infant health. Tax has a significant negative impact on maternal health whereas health spending, general government spending and expansionary fiscal policy have a significant positive impact on maternal health. Given the significant positive impact of health spending on both longevity and infant and maternal health, we recommend the allocation of more resources towards healthcare.

Key Word: Fiscal policy, Taxation, Health outcome, longevity, infant mortality

DOI: 10.7176/JESD/17-2-03

Publication date: February 28^th 2026