After three consecutive quarters of contraction, the human health and social service sector staged a rebound in the second quarter of 2019, growing the most in more than five quarters.
The sector rose by 0.72 percent points to 1.13 percent in 2019 second quarter from 0.41 percent in the same quarter of 2017, according to the National Bureau of Statistics secondquarter report.
However, its contribution to real gross domestic product (GDP) was almost unchanged at 0.71 percent but slightly higher than 0.68 percent recorded in 2016. Quarter on-quarter, this sector grew by 6.77 percent.
Contraction in the sector was prolonged largely by underfunding in critical areas of infrastructure, medical research, human capital development and poor welfare for healthcare practitioners among issues, stakeholders say.
According to the World Health Organisation, inequitable distribution of quality healthcare stem also from lack of planning leading to overproduction of some categories of health workers and commercial pressures in the private sector that lead to poor quality work.
Nigeria’s health expenditure as a percentage of the GDP in 10 years averaged 3.4 percent between 2007 and 2016, compared with peers South Africa 6.5 percent and Kenya 4.5, according to World Bank data.
As of 2018, only 3.9 percent (N340.45 billion) was devoted to health sector from the total budget of N8.6 trillion, meaning N1, 888 was allotted to save each Nigerian from the pangs of sickness.
Despite the meagre size of funding for population nearing 200 million, the substantial chunk of the health budget, N269.34 billion, flowed in the direction of recurrent expenditure including operations, wages and salaries, purchases of goods and services, and current grants and subsidies. N71.11 billion was saved for capital expenditure.
Unlike Nigeria, emerging market peers like Brazil, for instance, was able to raise health spending up to 9.8 percent of its budget in the decade.
Sodipo Oluwajimi, vice-chairman Medical Guild believes strongly that increase in health funding on the path of the government will be critical to sustaining the necessary development lacking in the health sector.
Better funding will, directly and indirectly, impact the country’s capacity to respond to expanding health needs and encourage competent medical expert to stay back as opposed to taking the next opportunity to jet out of the country.
The growth pattern is also envisaged to be sustained on long term healthcare vision that will enable the government to focus priority areas of need and increase access to quality health service for all and sundry.
On the private sector front, health initiatives have been receiving attention from investors including Echovc Partners, a Lagos-based venture capitalist; 54gene, a genomics company focused on African DNA, Mdaas Global, a start-up focused on providing diagnostics services; and Founder’s Factory Africa (FFA), an investment firm.
