Equity in Healthcare Financing: An Empirical Investigation of Nigerian Situation

Abstract

This study measures the extent to which healthcare payment in Nigeria deviates from proportionality in healthcare. The methodology is guided by Kakwani Progressitivity index (KPI) and data were extracted from the most recent Nigerian Living standard survey (NLSS) conducted in 2018/2019. It was observed that the healthcare payment system is regressive, which suggests negative vertical inequity. Implying that when the size of the income received and size of healthcare payment from income among the five socioeconomic groups is compared, the health payment system favours the non-poor. This paper suggests that an active alternative means of paying for healthcare services should be provided to close the gap between income and healthcare payment that will result to equity in healthcare payment. Specifically, healthcare payment policy that will make the poor to be at par with non-poor should be introduced.