Bridging Health Divides: Remittances and Health Expenditure in Nigeria[1]

Health expenditure is crucial for ensuring access to essential medical services and infrastructure, directly impacting individuals’ well-being and longevity. Adequate investment in healthcare can alleviate the burden of disease, enhance health outcomes, and bolster societal productivity and prosperity. Remittances, particularly significant in developing countries, play a vital role in households’ ability to access quality healthcare and medications, yet previous studies have often overlooked private and out-of-pocket health expenditures, primarily relying on micro-investigation. Using quarterly data from 2000Q1 to 2020Q4, this study examined the impact of remittances on health expenditure in Nigeria, revealing a significant positive influence on private and out-of-pocket health expenditure but not on general government health expenditure. Recognizing this impact, policymakers should incentivize investment in private healthcare infrastructure to enhance service quality, while also focusing on initiatives to facilitate healthcare access and promote financial inclusion among recipients to optimize the benefits of remittances. Additionally, exploring public-private partnerships in the healthcare sector can further leverage remittance funds to improve overall healthcare access and quality.