Chapter III

Nigeria: Sector Outlook

38
 CHAPTER III

NIGERIA: SECTOR OUTLOOK

3.1 Background

Nigeria's economy is a middle-income economy, a mixed economy and an emerging

market, with growing manufacturing, finance, services, telecommunications,
technology and entertainment sectors. It ranks 27th in the world in terms of nominal
GDP and 24th in terms of purchasing power parity. Nigeria has the largest economy
in Africa. In 2013, the country's thriving production sector became the continent's
largest sector, producing most of the goods and services for the West African region.
In the same period, the debt-to-GDP ratio was 16.075% in 2019.
Nigeria's GDP with purchasing power parity (PPP) almost tripled from $ 170 billion
in 2000 to $ 451 billion in 2012, but estimates of the size of the informal sector (not
included in official data) have brought the actual figure higher. nearly $ 630 billion.
Since then, GDP per capita has doubled from $ 1,400 in 2000 to $ 2,800 in 2012.
Again, GDP per capita, including the informal sector, is estimated at about $ 3,900
per capita.

Tab. 3.1 Economic Data starting 2001 onwards

Source: Drafted from data of World Bank
The country's population has grown from 120 million in 2000 to 160 million in 2010.
If the statistics are recalculated after the economic recovery of April 2014, GDP is

39
corrected to 80% (percent). Oil imports account for two-thirds of government revenue,
but oil accounts for only about 9 percent of GDP. Nigeria produces only about 2.7%
(percent) of the world's oil. Although the oil sector is important, it owns a small part
of the country's total economy, as government revenues are still highly dependent on
it.
In general, the livelihood sector could not withstand the rapid growth of the country's
population. Nigeria was once a major net food exporter, but now imports some food.
Mechanization has increased food production and exports, and as a result there has
been a shift in food security. In 2006, Nigeria agreed to buy most of its debt from the
Paris Club in exchange for about $ 12 billion in cash. According to a Citigroup report
released in February 2011, Nigeria is expected to have the highest GDP growth rate in
the world between 2010 and 2050. Nigeria is one of 11 African countries out of 11
global growth factors.
Globally, governments have always introduced and implemented economic policies to
achieve their desired micro and macroeconomic goals. In this regard, the Nigerian
government has implemented several trade policies over the years like 1981 Export
Promotion Strategy; trade liberalization policy since 1986; Exchange rate
liberalization in 1986 etc.
In 1991, the Export-Import Bank of Nigeria (NEXIM) was established and several
bilateral and multilateral trade agreements were signed. This trade policy was
expected to strengthen trade relations with the global community by facilitating
cross-border freight transport, increasing imports of advanced and modern
technologies, and increasing the availability of foreign currency, foreign capital
inflows, and education. Promote participation. Foreign enterprises in domestic trade
(UNCTAD, 2013). The influx of these resources is expected to increase the country's
international competitiveness, increase production and create jobs.

3.2 Gross Domestic Product (GDP)

Hattri and Rao (2002) and Ebrill, Stotsky and Gropp (1999) also argue that trade
policy influences sales tax revenues. The elimination of import quotas and the
reduction of tariffs will lead to a significant increase in trade and fewer incentives for
circumvention. This leads to higher commercial yields (Ifeakachukwu, 2018).
Employment is expected to improve as trade revenues increase. Despite the above

40
discussion on the link between trade policy and unemployment, the available data
show that greater trade transparency is not accompanied by a decrease in
unemployment (see Figures 1 and 2) and there is no empirical literature on this. topic.
It gave mixed results. result. Kemal et al. (2003) found that reducing quantitative
restrictions on income would improve workers' well-being, while Martes (2018) noted
that trade transparency had a significant and negative impact on unemployment.
Famode, Macalamba and Ngbolua (2020) and McMillian and Verduzko (2011)
observed some associations between trade policy and unemployment.

Fig. 3.1 GDP (current US$)

Source: Designed fom Data of World Bank
In Nigeria, little is known about the link between trade transparency and
unemployment due to a lack of local research on the subject. Many research on trade
transparency has focused on its relationship to economic growth (Ude and Agodi,
2015; Arodoye and Iyoha, 2014), while research on unemployment has focused on
other macroeconomic variables, such as economic growth, poverty and growth.
relation to government expenditures (see). Sodipe and Ogunrinola, 2011; Olloide,
2014).
Given the lack of knowledge about trade transparency and unemployment, this study
seeks to answer the research question "What is the relationship between trade
transparency and unemployment in Nigeria?" The aim of this study is to "analyze the
relationship between trade transparency and unemployment in Nigeria". The results of
this study provide an overview of the relationship between trade transparency and
unemployment, which will guide policy makers on appropriate trade policy measures
to address the issue of long-term unemployment in Nigeria.

41
Fig. 3.2 GNI per capita, Atlas method (current US$)
Source: Designed fom Data of World Bank
In November 2005, Abuja signed a debt reduction agreement with the Paris club in
exchange for a $ 18 billion debt reduction amounting to $ 12 billion, or $ 37 billion in
external debt, for a a total of $ 30 billion. Nigeria. Since 2008, the government has
shown political will to promote market-oriented reforms, such as modernizing the
banking system required by the IMF, eliminating subsidies and resolving regional
disputes over the distribution of oil revenues. From 2007 to 2012, GDP rose sharply,
driven by the growth of the non-oil sector and a steady rise in world crude oil prices.
President JONATAN has announced plans to bring together an experienced and
well-known economic team to increase transparency, diversify economic growth and
improve fiscal management. Lack of infrastructure and slow implementation of
reforms are major obstacles to growth.
Nigeria's gross domestic product will fall by -1.8% in 2020 compared to the previous
year. This percentage is 40 - one tenth less than last year, a change of 2.2%. In 2020,
the Gross Domestic Product (GDP) was USD 42,9423,000, and Nigeria was ranked
31st in the GDP ranking of 196 countries published by us. The absolute value of
Nigeria's GDP has fallen by $ 18.697 billion since 2019. Nigeria's GDP per capita in
2020 was $ 2,083, down from $ 2,230 in 2019 to $ 147. It is interesting to compare
these data with Nigeria's GDP per capita in 2010, of USD 2,328, to analyze the
change in GDP per capita over several years. In terms of GDP per capita, Nigeria
ranks 146th, and the well-being of its population is less than the 196 countries with
GDP we report.

42
3.2.1 Labour Force

Nigeria had a workforce of 74 million in 2015. The unemployment rate in 2003 was
10.8%. The unemployment rate in 2015 was 6.4%. Since 1999, the Nigerian Labor
Parliament (NLC), an umbrella union, has called for six general strikes to protest
rising domestic fuel prices. However, in March 2005, the government passed a bill to
abolish the KNB's monopoly on trade unions. In December 2005, the Nigerian Labor
Parliament (NLC) called for an increase in the minimum wage for federal workers.
The current minimum wage, which was introduced six years ago but has not been
adjusted since, is only $ 42.80 per month due to inflation.
According to the International Organization for Migration, the number of migrants
living in Nigeria has doubled in recent decades, from 477,135 in 1991 to 971,450 in
2005. The majority (74%) of Nigerian immigrants come from neighboring western
economic communities. African countries (ECOWAS) and this number has increased
significantly over the last decade, from 63% in 2001 to 97% in 2005. The government
has to pay high interest on bonds, which is partly due to the high birth rate; more
children and less savings.

3.2.2. Human Capacity

As of 2019, the Nigerian Human Development Index (HDI) ranks 161st with a score
of 0.539. Sub-Saharan Africa is 0.547, the United States is 0.926 and the global
average is 0.737. The value of the education index is 0.499, compared to the US
average of 0.900. The projected school year for Nigeria is 10.0 (16.3 in the United
States) and the average school year for adults aged 25 and over is 6.7 (13.4 in the
United States). At the same time, Nigeria is facing relatively high inequality,
exacerbating the problem of human capital formation.

3.2.3 Inflation

Inflation can be determined by the entire level of product and service of the economy
for a certain period of time. This is usually found in inflation theory. Inflation can be
described as a steady rise in prices or a decline in the value of money. From the point
of view of monetarism - too much money steals too little goods - it means a loss of
real value in the medium of exchange and in the unit of account of the economy.
Similarly, demand theorists see inflation as a situation in which the prices of goods

43
and services rise as a result of excessive demand. In addition, structural factors are
seen as factors of inflation, especially in developing countries. In 2016, the Naira
black market exchange rate was about 60% higher than the official exchange rate. The
central bank issues about $ 200 million a week at the official exchange rate. However,
some companies say their budgets now include a 30% "gift" for central bank officials
to receive dollars.

Fig. 3.3 Inflation, consumer prices (annual %)

Source: Designed fom Data of World Bank
According to the National Bureau of Statistics, on January 17, 2022, inflation in
Nigeria rose from 15.40% in November to 15.63% in December 2021. According to
the National Statistics Office, the price of goods and services measured by the
Consumer Price Index in December 2021 increased by 15.63% compared to
December 2020. According to the NBS, the increase in the food index is due to rising
food prices. Bread and cereals, food, meat, fish, potatoes, yams and other tubers, soft
drinks and fruit.
In Nigeria, the Central Bank of Nigeria (CBN) has authority over monetary and price
stability, and the compilation of price statistics and other economic data is the sole
responsibility of the National Bureau of Statistics (NBS). The NBS is responsible for
calculating the price index used to calculate inflation, called the composite CPI,
issued monthly by the Laspeyres formula for calculating the composite index. The
NBS first revised the CPI-based period from 1960 to 1975 using the 1974/1975
National Living Standards Survey (NLSS). Then, in 1980/81 and 1996/97, another
survey was conducted based on product portfolio updates and improvements used in
CPI calculations to assess the realities of purchasing power developments and to

44
reflect consumption patterns. . Consumption. It revised the CPI reference period in
1985 to May 2003.Inflation in Nigeria has been above average for several years in
sub-Saharan Africa and exceeded 16% in 2017. Rising inflation everywhere usually
reflects a recession. Figure 2 shows the inflation trend in Nigeria from 1970 to 2018.

3.2.4 Unemployment

One of the 17 new Sustainable Development Goals (SDGs) recently announced by the
United Nations (UN) includes both funding and employment. The SDGs aim to
eradicate poverty and inequality worldwide by 2030. Is it true that the development of
the domestic financial sector lowers the unemployment rate in developing countries?
The current financial crisis, especially in developed countries with the financial sector,
has led to widespread unemployment, raising concerns about the financial situation in
the labor market (Pagano and Pica, 2012).
However, Bruhn and Love (2014) find that the economy can reduce poverty because
it has a significant positive effect on labor market outcomes, and funding has a
positive effect on the labor market.A well-developed financial sector makes local
financial institutions and networks stronger and more dynamic. The financial sector is
responsible for a variety of responsibilities, including financial products and services,
business operations, financial risk assessment, development guidance, development of
relevant regulations, and appropriate financial supervision (El-Burainy & Salah,
2021).
The financial sector increases and stimulates productive investment and consumption
by mobilizing resources, loans, support for successful businesses, insurance,
remittances and payment networks. All of the above should promote and promote
business development, especially for small and medium-sized enterprises (SMEs).
Advances in the financial sector address the changes needed for the development and
integration of sectors of the economy with the greatest potential to provide productive
jobs with decent employment prospects (Osikena and Ugur, 2016). The goal of each
country is to provide a decent job for its citizens. However, this goal has not been
achieved in many countries, especially in developing countries, including Nigeria.
Consequently, the government has strengthened its political arsenal in this direction
by conducting several empirical studies to identify macroeconomic variables related
positively (negatively) to employment (unemployment).

45
Fig. 3.4 Unemployment, total (% of total labor force) (modeled ILO estimate)
Source: Designed fom Data of World Bank
However, few empirical studies have been conducted on the short-term relationship
between financial development and unemployment, taking into account the different
criteria of financial development. The purpose of this study. Using various indicators
of financial development and using ARDL as a method of evaluation, we found that
only the initial contribution of the financial system to GDP in the short and long term
can reduce unemployment. Other private sector financial indicators, such as credit,
financial liquidity, financial efficiency and financial stability, will reduce short-term
unemployment. We also found a combination of financial development and
unemployment (including inflation and real GDP). We attribute the results of the level
of development of the financial sector in Nigeria, comparing the results with the level
of development of the financial sector in developing and developed countries. Based
on this, it is important for governments to develop and implement appropriate policies
to further strengthen and deepen the financial sector by strengthening supervision and
regulation and to enable the financial sector to play an effective and efficient
mediating role in the economy.

3.3 Education

Education is the foundation of any country's development. It is the basis for

significant and sustainable growth, development and achievement in the arts, sciences
and technology. In this regard, Umo (2005) confirmed that education is recognized as
a catalyst for socio-economic, scientific and technological development worldwide.
For example, the Federal Government of Nigeria (2004) stated in its national

46
education policy that education is an excellent tool for national development. In other
words, education must be properly planned before a country can develop and develop
significantly. Education is important for any society, because it is an integral part of
the social life of a nation. From the above hypotheses we can see that education is no
longer just a subject, but a philosophical force that positively influences human
development. It is clear that without a philosophy, such knowledge cannot achieve the
goal of national development. Without philosophy, it would be strange for a turtle to
walk without a shell of knowledge. The purpose of this article is, therefore, to
demonstrate how philosophical knowledge is the basis of national development. In
Nigeria, education has been adopted as a tool of choice for achieving national goals
(FGN, revised in 1981). As an independent developing country facing the problems of
nation-building, social cohesion and economic development, education is seen and
accepted as a tool for solving the basic problems of national development. Through
education, members of society develop feelings of national unity, patriotism, and
loyalty.

Fig. 3.4 Literacy rate, youth total (% of people ages 15-24)

Source: Designed fom Data of World Bank

3.3.1 Philosophy and goals of education in Nigeria

The philosophy and goals of national education usually deviate from the goals of the
people and can be said to be defined social values that can be achieved or supported
through education. The philosophy and the objective of Nigerian education is an
important monument after the completion of the different stages after it has been
transformed from today's pervert.

47
Unlike cloning products, it is a cloned copy, which does not require requests and posts
of posting, but is constantly participating in the master's master, but constantly
participates in the economic master (FAFORWA, 1974), and the modern tasks of
philosophy and education are formulated. Based on the following criteria:
Evaluates human nature, human nature, types of society and society, types of society,
types of society, form of society and ideas of individuals. As a country, Nigeria seeks
to build a free and democratic society, a just and egalitarian society, a single strong
and confident nation, a large and dynamic economy and a nation with real and full
opportunities for all its citizens (EGF 1981, rev.).
Based on these national goals, Nigeria's educational philosophy is based on social,
cultural, economic, political, scientific and social, cultural, economic, political and
scientific, as well as self-realization, improving human relations, personal and
national effectiveness, effective citizenship. , national consciousness and It is based
on national unity. Technological progress must be dictated. . the aims and objectives
of education that link philosophy;
(i) Assimilation of national consciousness and national unity.
(ii) to introduce appropriate types of values and attitudes for the survival of
individuals and societies;
(iii) trains the mind to understand the world around it
Acquiring mental and physical skills, abilities and abilities as tools necessary for the
survival of the individual and contributing to the development of society. (Revised
FGN 1981) The philosophy and aims of education mentioned above are highly
commendable and necessary. However, in order to achieve this, teachers who teach
all the necessary and necessary values in all areas of personal life and society must
have effective teaching methods.

3.3.2 Expenditure on Education

Despite continued government efforts to fund the education sector through budget
allocation, the performance of education in Nigeria has not yet improved significantly.
This is mainly due to lack or lack of public funds. According to statistics from the
Nigerian Ministry of Education (2017), approximately 60 million people (30%) are
illiterate, of which 60% are women. Again, Orubuloye & Oni (1996) and Riman &
Akpan (2012) found that the budget allocation for education was on average 4% over

48
several years, which is low given the importance of the education sector in the
economy. At the same time, spending on education between 1975 and 2015 accounted
for an average of 6.97% of government spending (February 2015). This violates
UNESCO's minimum recommended standard of 26% of the annual budget.
It is believed that this trend has exacerbated the country's educational performance, as
Nigeria has over 10.5 million out-of-school children. If you look closely at the
national statistics, Nigeria's education spending is scarce. Ghana spends 20% of its
education budget, Botswana spends an average of 21% and Kenya spends 20% less
than other developing countries. Uganda spent 15%, while Nigeria spent only 3%
(Ude & Ekesiobi, 2014). Quality education for all and the ability to meet new
priorities depend on the availability of adequate funding for education, but the
mechanisms for managing, allocating and controlling funding play a key role in
ensuring where resources are used. the most different.
The Nigerian education system covers three areas: primary education (9 years),
post-secondary / higher education (3 years) and higher education (4 to 6 years,
depending on the curriculum). According to Nigeria's national education policy
(2004), primary education consists of 9 years of formal education (compulsory),
including 6 years of primary education and 3 years of secondary education.
Post-school education includes three years of secondary education. At the third level,
the system consists of a university sector and a non-university sector, the latter
comprising a college, a single technical and educational university. The higher sector
offers opportunities for undergraduate, master's and vocational education as a whole.
Nigeria's primary education sector outpaces a strong population growth, with 44% of
the population under 15 in 2015. According to the United Nations (2010), Nigeria has
become the country with the highest number of children without schooling in the
world, as 8.73 million elementary school students did not attend school in 2010. Lack
of adequate education for children undermines the Nigerian system in its center.
Thousands of new schools have been built in recent years to address this issue.
Despite recent improvements in primary education, the primary education system is
underfunded, has a weak material and technological base, has poor teacher training
and is under-performing by international standards. The net enrollment rate in basic
education in 2010 was 63.8%, which was 88.8% higher than the global average.
According to the latest graduation statistics, about a quarter of today's students drop
out of primary school. This low level of employment maintains Nigeria's illiteracy

49
rate, which is relatively high compared to other Saharan countries, but well below the
global average. Globally, Nigerian universities are significantly smaller compared to
other African countries, such as South Africa, Ghana and Uganda. In the Times
Higher Education 2017 ranking, Nigerian universities are ranked among 1,000
international universities. The strike is also disrupting teaching at Nigerian
universities, delaying graduation, losing the income of university staff and further
undermining the already low level of confidence in the education system.

3.4 Health

3.4.1 Maternal Mortality

Mothers have the unique ability to make a socio-demographic contribution to the

economy of any country. They do this by raising newborns. In this context, the health
of the mother and the child is a very important topic of discussion. At all times, the
mother's health is closely linked to the health of the newborn. This is the degree to
which the mother-child mortality rate affects the inseparable relationship between
mother and child. The fact that maternal and child health is included in the
Millennium Development Goals (MDGs) and the Sustainable Development Goals
(SDGs) is an undeniable recognition of this fact.

Fig. 3.6 Mortality rate, under-5 (per 1,000 live births)

Source: Designed fom Data of World Bank
 Population > 200 million
 23% Women of child-bearing age
 20% children under five year

50
 1 in 34 women of child-bearing age risk dying from pregnancy and childbirth in
Nigeria (NDHS, 2018)
 Maternal Mortality Ratio of 512 per 100000 live births (NDHS, 2018)
 For every 1000 live births, 5 women die during pregnancy and delivery
For example, MDG 5 was formulated to reduce maternal mortality by three quarters
between 1990 and 2015. To measure progress towards MDG 5, maternal mortality
was compared with birth rates involving skilled health workers. However, the
Nigerian government has not reached MDG 5.
Unfortunately, approximately 536,000 girls and women worldwide are enrolled each
year for pregnancy-related reasons, and one girl or woman dies every minute.
Pregnancy should certainly bring joy and celebration, but it seems a death sentence
for most women in Nigeria, due to the poor functioning and receptivity of the health
system, which is characterized by a persistent lack of skilled labor, structures and
obsolete equipment. . This is not due to the lack of medical support from the Nigerian
government. The allocation of annual budgetary resources to the health sector has
been inconsistent over several years and is well below the recommended standards.
Funding for the country's health system is not limited to governments, but also applies
to other partners, such as state and local governments, charities and out-of-pocket
spending. Therefore, this study was developed empirically to study the effect of
public and private health spending on maternal mortality in Nigeria.

Fig. 3.7 Maternal mortality ratio (modeled estimate, per 100,000 live births)
Source: Designed fom Data of World Bank
Broadly speaking, it is surprising that developing countries account for about 99% of
global maternal mortality, half of which occurs in sub-Saharan Africa. According to

51
the World Health Organization (WHO), The death of a pregnant woman or the death
within 42 days of an abortion is defined as an accidental death due to pregnancy,
regardless of the duration and place of the pregnancy. Although there is no statistical
consensus, many studies show that Nigeria has one of the highest maternal mortality
rates in the world. The death toll is highest in northern Nigeria. Maternal death has
many common consequences in any society. Its impact has a profound impact on the
economic, social, physical, mental and psychological spheres of human life.
Pregnancy and the death of women after childbirth are the unfortunate and tragic
conflicts in Nigeria in the 21st century. Because a natural pregnancy naturally brings
joy and celebration in any society. However, sadness, pain and trauma are the
consequences of pregnancy that can lead to the death of either the mother or the child.
Unfortunately, most deaths of pregnant women and their children in Nigeria can be
prevented through functionally efficient and affordable maternal health care. The
impact of maternal death on society is enormous and is passed down from generation
to generation. Basile, Rigodon, Berman, Bulanger, Maistrellis, Kausiva and Yamin
noted that maternal mortality increases the deceased's vulnerability to long-term
health and social difficulties, including malnutrition, disruption of education, work,
early partnership, pregnancy and care. Miller and Belizean also documented the
negative consequences of maternal mortality, including the inter-generational cycle of
economic opportunity and poverty in families and societies. Maternal mortality has
also been identified as a visible threat to the health and viability of the newborn,
including economic decline in family functioning and social status.
Also, a child whose mother died 42 days after birth is considered 46 times more likely
to die in a month than a surviving child. Hole, Clark, Kahn, Tollman, and Yamin also
found that mothers of children who are the unfortunate result of their mother's
premature death were 15 times more likely to die than those who survived. That is,
children under one month of age whose mothers died prematurely had a higher risk of
death than older children. This shows that the health of the child and the mother is
closely linked.
The impact of maternal mortality can also be considered economically. According to
Kes, Ogwang, Pande, Douglas, Karuga, Odhiambo, Laserson and Shaffer, some of the
funeral costs of deceased women often exceed medical costs, preventing households
from saving money and mortgages. In addition, the economic impacts of maternal
death include a decline in the workforce, the loss of strategic households or nurses,

52
the loss of care for the elderly, and disruptions in the process of building human
capital. The above factors interact and consolidate, reducing economic growth. In
addition to the direct clinical and medical causes of maternal mortality, certain distal
factors, such as economic, institutional, political, social, and cultural factors combine
maternal mortality. This study examines the non-medical factors that contribute to
maternal mortality in Nigeria. The issue of non-medical factors related to maternal
death is a health management issue.
The issue of maternal mortality in Nigeria is a serious issue in the health debate. Here
are some tips to get rid of these negative trends. However, with adequate funding,
special attention is paid to an effective healthcare system.
Therefore, in this context, it is important to assess the combined impact of public and
private health care spending on maternal mortality in Nigeria. In particular, private
medical expenses (PRHEXP) did not have a significant effect on maternal mortality in
Nigeria for 16 years. That is, if other factors that determine the maternal mortality rate
continue, an increase in personal medical expenses N1 increases the maternal
mortality rate by -0.977049 during the review period. This finding supports the
findings of a group study by Rana, Alam and Gow48, in which high health care costs
are easily associated with maternal mortality. However, this conclusion differs from
several comparative studies49. Increasing public and private spending on health care
has reduced maternal mortality.

3.4.2 Infant Mortality

Infant mortality is the death of a child, usually one year of age or younger. It is
measured as the infant mortality rate (RM), which is the infant mortality rate per
1,000 live births (WHO, 2001). The leading causes of death in children are
asphyxiation at birth, pneumonia, complications during childbirth, neonatal infections,
diarrhea, malaria and measles. Infant mortality is influenced by many factors, such as
the mother's level of education, environmental conditions, and political and health
infrastructure. Improved sanitation, access to clean drinking water, immunization
against infectious diseases and other health measures will help reduce high infant
mortality. Tens of millions of infants and young children around the world die each
year before the age of five. This represents 99% of deaths in developing countries
(WHO, 2003).

53
Infant mortality was the indicator used to monitor progress towards the United
Nations' fourth Millennium Development Goal in 2015. This is now the Sustainable
Development Goal of no. 3 (“Promoting healthy lifestyles and well-being for all ages”,
WHO, 2016). The percentages for a given region are multiplied by the number of
deaths in children under one year divided by the number of births per year (Maureen,
2006).
Economic growth is when the productive capacity of the economy increases, allowing
the economy to produce additional goods and services. Our standard of living is
usually measured by the amount of goods and services available. Thus, economic
growth is synonymous with an improvement in the general standard of living. Growth
is important because it is a tool for improving living standards. It also allows
population growth without reducing the standard of living (Noel, 2012). Growth is an
important political goal of all governments that address pressing issues of economic
governance. Capital growth offers many benefits associated with increasing gross
domestic product (GDP), including improving the general standard of living of the
population, as measured by national income, facilitating the distribution of income,
and increasing the time to perform tasks. basic need. from humans to the majority of
the population (Uwakaeme, 2015).

3.4.3 Life Expectancy

Life expectancy is an important health variable for the global economy, especially for
developing countries such as Nigeria, which are on the path to sustainable economic
growth and development. Life expectancy depends on individual health. The World
Health Organization (WHO) has defined health as the state of being physically,
mentally and socially healthy, as well as the absence of disease or illness. Empirical
research shows that household income, medical expenses, government spending and
inflation. It has been shown that there are several variables, such as those that
influence health in Nigeria (Salatin & Bidari, 2014; Ude & Ekesiobi, 2014; Klobodu
et al., 2018).
Despite the increase in life expectancy in Nigeria over the past 20 years, it is still
found in Japan, the United States, China and elsewhere. such as developed countries
in the world and some countries in sub-Saharan Africa. Ghana, Kenya etc. (Sede &
Ohemeng, 2015). This number increased by about one year to 45.6 years in 1981 and

54
46.1 years in 1985. In 1993, it decreased to 45.8 years, and in 1994, it increased to
48.2 years. However, after 1995, this number increased to 50.8 years in 2010 and to
53.4 years in 2016 (CBNSB, 2017 and WDI, 2018). This figure increased by 0.84%,
to 53.73 in 2017, and increased by 0.83% and 0.58% annually after 2018 and 2019 to
54.18 and 54.81 years, respectively. According to the UN World Population Prospects
(2020), this figure was 54.81 years.
To investigate the causal relationship between inflation and life expectancy over a
40-year period (1980-2019) in Nigeria, the Granger Causal Test found no causal
relationship between inflation and life expectancy.

Fig. 3.8 Life expectancy at birth, total (years)

Source: Data.worldbank.org
As in the study period, Nigeria points out that there is a one-way causal relationship
between exchange rates and life expectancy in Nigeria. Based on these results, we
recommend, among other things:
i. In particular, the Nigerian government and monetary authorities know that currency
stability is important for longevity, so structures that ensure exchange rate stability
must be carefully placed.
ii. Health decision-makers, health workers and ministries of health around the world
need to develop plans and strategies to increase life expectancy, especially in
sub-Saharan Africa.
iii. In order to achieve the desired health outcomes, governments need to invest and
devote more resources to healthcare.

55
3.4.4 Insurance

National Health Insurance was established in 2005 to improve people's access to

high-quality health care and health. NHIS is a public-private partnership between
NHIS, the World Health Organization (WHO) and other health care providers (private
and public). The overall aim is to improve the health of citizens by ensuring universal
health care and access to adequate and accessible health care. He was tasked with
implementing UHC (UHC) within 10 years of the first (2005-2015). Although the
National Health Insurance Corporation has established health insurance with the
approval of the health insurance company, it certifies health care providers who offer
preferential packages to registered persons. Healthcare organizations are responsible
for health procurement.
Beware of registered registrants. There are currently 62 HMOs contracted with NHIS
to participate in this initiative. However, only five of these HMOs currently represent
75% of registrants. Under the current agreement, federal civil servants have the right
to register their husbands and four children under the age of 18.
Participants choose a health care unit of their choice to receive health care services
(Federal Department of Health 2014). To ensure effective application to the
population, the plan includes specific programs for different social groups. Part of the
official federal health insurance program for civil servants, the urban social health
insurance program for the self-employed, the rural health insurance program for the
rural population, and the social health insurance program for children under five also
include pregnant women (Federal Department of Health 2016). Of the 23,640 health
care units in the country, only 7,300 (31%) are accredited by NHIS to serve registered
registrars.4.5 million people, or 3% of Nigeria's population, currently benefit from the
program. This percentage is mainly in the official sector. Over the remaining 75% of
the informal sector is largely open. In the current system, the employer pays 10% of
the basic salary of the insured, and the worker pays the remaining 5%.

3.5.5 Expenditure on Health

Nigeria is one of the developing countries with poor health and related problems.
Nigeria's health is much lower than that of other sub-Saharan African countries. Low
life expectancy at birth, high infant and maternal mortality, malaria and tuberculosis
are some of the signs of health in Nigeria. For example, in 2020, life expectancy at

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birth in Nigeria is estimated at 54 years, while in Ghana it is 63 years. High rates of
HIV / AIDS has also contributed to the low life expectancy in Nigeria.

Domestic General Health Domestic Private Health Out of

Year
Expenditure (%) Expenditure (%) pocket (%)
2001 26.89 66.39 60.74
2002 21.33 71.36 65.05
2003 18.39 75.89 72.81
2004 25.94 67.84 64.55
2005 25.56 68.99 65.97
2006 21.18 73.41 70.46
2007 19.91 74.19 70.94
2008 17.87 76.06 72.76
2009 15.92 77.86 74.48
2010 13.60 80.14 76.88
2011 14.43 77.71 74.73
2012 16.20 75.38 72.84
2013 14.30 73.25 70.92
2014 13.31 74.40 71.85
2015 16.45 73.64 71.89
2016 13.02 76.66 75.18
2017 14.18 77.91 77.22
2018 14.87 77.2 76.60
2019 11.02 45.26 43.42
2020 11.02 45.26 43.42

Tab. 3.2 Size and Composition of forms of Health Financing

Source: World Development Indicators, 2021
According to the United Nations Joint Program on HIV / AIDS [UNAIDS] (2019),
Nigeria is the second largest country in the world in terms of HIV infection and has
one of the highest rates of new infections. In addition, approximately 1.9 million
people live with HIV, 1.5% of adults between the ages of 15 and 49 are infected with
HIV, and 130,000 new HIV infections and low levels of antiretroviral therapy lead to
related deaths. of AIDS in Nigeria. There are many dead. In addition, about 52% of

57
deaths under the age of 5 are due to malnutrition. As primary care is an important
form of investment in human capital and a key determinant of growth and poverty
reduction (UNAIDS, 2019), health can influence growth and poverty reduction
projects. However, without adequate funding, sustainable healthcare is impossible.
Table 3.5 shows that private internal and out-of-pocket medical expenses are growing
faster than general medical expenses. This shows that domestic and out-of-pocket
medical expenses contribute more to the current costs of healthcare in Nigeria.
However, their movements show similar trends in volatility over the years, as shown
in Figure I. They recorded the highest growth rate of 80.1% in 2010.76.9% each.
Gross Domestic Product (GDP) is a comprehensive measure of a country's economic
health. Critics of GDP as a measure of economic growth argue that GDP was never
designed to measure progress, ignoring other important external factors such as
resource extraction, environmental impact, and unpaid housekeeping. Figure 2 shows
the different trends in health finance and real GDP. As shown, domestic private health
expenditure (% of current health expenditure), public internal health expenditure (%
of current health expenditure) and private expenditure (% of current health
expenditure) followed the same path. This shows that real GDP and health care
spending are symmetrical.
Last year's production activity affects this year's production activity in the short and
long term. modern housewifePublic health spending has had a negative impact on
economic growth, and the government's domestic medical spending last year has had
a positive effect on economic growth. Individual health expenditure follows the same
path as public health expenditure. Private domestic spending on health has a
significant positive impact on economic growth. The results highlighted the
importance of private spending on health compared to public spending on further
economic growth. Therefore, both medical expenses and regular medical expenses
from last year are important factors for economic growth. Therefore, governments
need to increase private health spending (where health insurance may be relevant),
increase health budget allocations, and monitor the performance of the health sector to
achieve sustainable economic growth.

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