Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access

Assessement of Health Sector Performance Through Donor Funding in Nigeria

Kenneth Jegbefumwen, Lucky Ifeanyichukwu Amabuike, Christopher K. Dike, Cynthia Ogochukwu Isiwu

13 April 2026 · Vol. 2, Issue 4, pp. 211-223

DOI: 10.65150/EP-jefrr/V2E4/2026-02

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Abstract

This study explores the importance of donor funding on health sector performance in Nigeria by employing time series data between 1985 and 2024. The quantitative data were gathered from CBN (2025), NBS (2024) and WDI (2021). The unit root test confirmed a mixed of integration ranging from order 1(0) and 1(1) while the bound test of co-integration revealed that the life expectancy at birth and infant mortality rate models have long run association. The ARDL results outlined that life expectancy at birth (LEB) shows that private sector participation in health (PPHgdp) is the most consistent and significant positive determinant of life expectancy in both the long and short run. Official development assistance (ODA), has a small but significant negative effect on LEB in both periods, suggesting that higher ODA may not directly translate into improved life expectancy. Net bilateral aid donor (NBAD) exhibits mixed effects, with an immediate positive impact in the short run but a delayed negative effect, indicating that bilateral aid may have short-lived benefits or lagged adverse outcomes. Government expenditure on health (GEHgdp) shows mixed and generally insignificant effects, implying that public health spending alone does not strongly influence life expectancy. For the Infant Mortality Rate (IMR) model, Private sector participation in health (PPHgdp) significantly reduces infant mortality, while official development assistance (ODA) has significant positive effect. Net bilateral aid donor (NBAD) and government expenditure on health (GEHgdp) are not statistically significant, indicating limited long-term influence on infant mortality. In the short run, ODA contributes to a reduction in IMR, contrasting its long-run effect, while PPHgdp continues to reduce infant mortality with a one-period lag. GEHgdp exhibits a delayed positive effect, suggesting past government health spending may temporarily increase IMR, and NBAD remains largely insignificant. The followings are for policy recommendations, Policymakers should encourage public-private partnerships, provide fiscal incentives for private healthcare investment, and establish regulatory frameworks that ensure quality, equitable, and accessible private healthcare services, particularly targeting maternal and child health. Ensure that aid programs are aligned with national health priorities, focus on measurable outcomes, and are implemented efficiently to avoid short-term inefficiencies or long-term dependency. Optimizing government health expenditures, prioritizing interventions with immediate and measurable impacts such as maternal and child health programs, immunization campaigns, and essential health infrastructure, while ensuring accountability and minimizing resource wastage.

Keywords: Mobile money, financial inclusion, digital finance, mobile money usage, OPay, Nigeria.

Kenneth Jegbefumwen, Lucky Ifeanyichukwu Amabuike, Christopher K. Dike, & Cynthia Ogochukwu Isiwu (2026). Assessement of Health Sector Performance Through Donor Funding in Nigeria. Journal of Economic, Finance Research and Review, 2(4), 211-223. https://doi.org/10.65150/EP-jefrr/V2E4/2026-02

@article{Kenneth2026,
  title   = {Assessement of Health Sector Performance Through Donor Funding in Nigeria},
  author  = {Kenneth Jegbefumwen and Lucky Ifeanyichukwu Amabuike and Christopher K. Dike and Cynthia Ogochukwu Isiwu},
  journal = {Journal of Economic, Finance Research and Review},
  year    = {2026},
  volume  = {2},
  number  = {4},
  pages   = {211-223},
  doi     = {10.65150/EP-jefrr/V2E4/2026-02},
  url     = {https://doi.org/10.65150/EP-jefrr/V2E4/2026-02}
}

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