THE IMPACT OF FOREIGN INFLOWS ON THE HEALTH SECTOR IN NIGERIA

ABSTRACT

This study examined the impact of foreign inflows on health sector in Nigeria for the period of 1981-2019. The main objective of this research work is to examine the impact of foreign inflows on health spending in Nigeria. The study used Error Correction Mechanism (ECM) to examine the relationship between foreign inflows and health spending in Nigeria. The study found the level of foreign remittances positively and significantly impacts the health sector spending and also, foreign direct investment negatively and significantly impacts the health sector spending and finally foreign official assistance was found to have a positive and significant impact on health sector spending in Nigeria. The study therefore recommends that there should be cohesion between the government and private organizations in Nigeria, the objective being to implement world-class corporate guidelines and standards into the nation’s governance that would make it possible for foreign investment to thrive in the Nigerian investment community and this would one way or the other affect the health sector of the country. Also, foreign inflows most especially foreign direct investment would best benefit Nigeria when accompanied with a transfer of skills, investment in innovative research and development, and increased local manufacturing of health related and other products. Also, the Nigerian government should also provide a number of incentives related to taxes, importations from foreigners and other sectors to encourage more investment from within and outside the country seeing foreign direct investment is a key factor that determines health sector performance from the study.