Domestic Resource Mobilisation And Health Outcomes In Nigeria

 ABSTRACT

The funding of healthcare in Nigeria has often been described as inadequate with budgetary allocation hardly exceeding 3 percent of the budget. Healthcare spending in Nigeria is segmented into private and public spending. While public expenditure in Nigeria account for 20-30% of total health expenditures, private expenditures accounts for 70-80% of total health expenditure. Most developing countries have been dependent on aid for development financing neglecting opportunities for domestic resource mobilisation. In the light of the lingering challenges with under-five child mortality, this study considered agriculture as a source of Domestic Resources Mobilisation. Agricultural value addition is conceived as a key revenue earner for government to increase healthcare funding. The variables were first tested for stationarity. The study adopts the Cointegration and Vector Error Correction technique to check for long run association and short run dynamics to ascertain the speed of adjustment when a shock occurs in the system. The result revealed that (i) there is a positive and long run relationship between tax revenue and under-five mortality, (ii) Agricultural productivity has an inverse relationship with under-five mortality rate, (iii) Gross capital formation and under-five mortality have a positive relationship, (iv) A positive relationship exists between female literacy rate and under-five mortality rate, (v) there exist a negative relationship between carbon dioxide emission and under-five mortality. Based on the findings, it is suggestive that revenue generation over the period has not been properly channelled. Agricultural Productivity and potential tax revenues will be useful to curb under-five mortality in the long run. Therefore, it is suggested that policy be made to enhance tax administration towards agricultural activities. Moreover, investments in agro-allied industries and infrastructural capacity are suggested to reduce the cost of distribution and waste of agricultural products. This study and its outcomes have significant relevance and implications for achieving Sustainable Development Goals in Nigeria.