In a recent report released by the World Bank titled ‘Human Capital Public Expenditure and Institutional Review’, Nigeria’s allocation of public funds towards education and healthcare has been flagged as severely insufficient.
The report, which analyzed the financing and governance challenges affecting the country’s basic education and primary healthcare delivery, highlighted significant disparities compared to global and regional benchmarks.
According to the findings, Nigeria’s overall public spending on these critical sectors stands at a mere 12% of Gross Domestic Product (GDP), falling short of international standards. This figure contrasts starkly with the Sub-Saharan African average of 17.2% and the 18.5% average for lower-middle-income countries.
Over the past five years, Nigeria’s expenditure on health and education has fluctuated between 10% and 12% of GDP, further underscoring the inadequacy of current investment levels.
The report emphasizes that such low levels of investment have dire consequences for public service delivery, particularly in health, where a significant portion of spending remains out-of-pocket.
This system excludes a large segment of the population from accessing essential healthcare services, perpetuating disparities and hindering progress toward improved health outcomes.
Highlighting specific figures, the report reveals that Nigeria spends approximately $23 per capita on education and $15 per capita on health. Of the education expenditure, states contribute $14 per capita, with the federal government covering the remainder.
Similarly, state governments shoulder $8.5 per capita of the health expenditure, leaving a substantial gap in funding required to address critical health challenges like high child mortality rates and access to healthcare facilities.
The World Bank attributes the low investment in health and education primarily to constrained overall public spending, exacerbated by Nigeria’s low revenue base.
In 2021, allocations to education and health accounted for only 10.1% and 6.6% of the total budget (federal plus state), respectively.
This pales in comparison to expenditures on General Public Services (24.2%) and Economic Affairs (18.4%), underscoring competing priorities that often sideline crucial social sectors.
Looking ahead, the report recommends urgent measures to enhance state budget execution rates and increase allocations at both federal and state levels.
These steps are seen as crucial for ensuring adequate financing of health and education services, which are essential for sustainable human capital development in Nigeria.
Commenting on the report, Professor Tanimola Akande, a Public Health expert and former National Chairman of the Association of Public Health Physicians of Nigeria, criticized the country’s inadequate health funding.
He highlighted Nigeria’s lag behind international benchmarks and emphasized the need for political commitment to enhance funding efficiency and transparency across all levels of government.
The findings from the World Bank’s report underscore a pressing need for Nigeria to reevaluate its budgetary priorities and commit to substantial investments in education and health.
Addressing these shortcomings is not just a fiscal imperative but a critical step towards improving the quality of life and achieving sustainable development goals for all Nigerians.
In conclusion, while challenges persist, the World Bank’s report serves as a clarion call for policymakers to prioritize and adequately fund education and healthcare, laying the foundation for a healthier and more prosperous future for Nigeria’s citizens.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
