IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 9 NO. 9 2024
DOI: 10.56201/ijefm.v9.no9.2024.pg171.202

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Domestic Debt and Public Health Financing: Evidence from Nigeria

Lucky Anyike Lucky and URANTA, Joseph Apawari

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Abstract

There is a consensus between the World Bank and International Monetary Fund that the development of domestic bond markets deserves high priority to enhance infrastructural financing. This study focussed on the effect of domestic debt and public health financing in Nigeria. Time series data were sourced from Central Bank of Nigeria Statistical Bulletin from 1986 to 2023. Public health budget was modelled as the function of Treasury Bonds, Treasury Bills and Federal Government of Nigeria Bonds. The study employed Unit Root, Co- integration, Error Correction Model and Granger Causality techniques in analysing secondary data. The unit root test revealed that Domestic Debt all the variables were integrated as order 1 or I (1), meaning it is non-stationary at original level. The study found that the estimated model found that 58.5 per cent variation in public expenditure on health the model is statistically significant by the value of f-probability. Based on the validity of lag I, the study also found that Treasury bond and federal government bond have negative effect on public expenditure on health while federal government treasury bills have positive effect on the dependent variable. The probability value of 0.3098 is greater than the critical value of 0.05, the study conclude that there is no significant relationship between Treasury bonds and public health sector expenditure. The probability value of 0.6110 is greater than the critical value of 0.05, the study conclude that there is no significant relationship between Treasury Bills and public health sector expenditure. The probability value of 0.5334 is greater than the critical value of 0.05, the study conclude that there is no significant relationship between FGN bonds and public health sector expenditure in Nigeria. We recommend that federal government should establish a comprehensive debt monitoring and forecasting system to manage debt sustainability effectively. Invest i

keywords:

Domestic Debt, Public Health Financing, Treasury Bills, Federal Government

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