World Bank Report Highlights Insufficient Health and Education Spending in Nigeria

According to a recent report by the World Bank, Nigeria’s public expenditure on health and education falls significantly below international standards, posing challenges for basic service delivery.

Titled ‘Human Capital Public Expenditure and Institutional Review,’ the report emphasizes that Nigeria allocates only about 12% of its Gross Domestic Product (GDP) to public spending, which is lower than the Sub-Saharan African average of 17.2% and the average of 18.5% for lower middle-income countries. Over the past five years, Nigeria’s spending on health and education has ranged between 10% and 12% of GDP, which the report deems inadequate for meeting essential public service needs.

The report further notes that Nigeria’s per capita spending on education stands at $23, with states contributing $14 and the federal government covering the rest. Similarly, the per capita spending on health is $15, with states contributing $8.5. These figures are described as inadequate when compared to international benchmarks, especially considering the country’s challenges with out-of-school children and child mortality rates.

The World Bank attributes the low spending levels primarily to constrained overall public spending, influenced by low revenue generation. In 2021, allocations to education and health constituted 10.1% and 6.6% of the national budget respectively, with larger shares allocated to general public services and economic affairs.

The report recommends increasing budget execution rates at state levels and enhancing federal and state allocations in the medium to long term to ensure adequate financing for health and education services. It underscores the importance of political will and commitment from Nigerian leaders to improve funding in these critical sectors, enhance the national health insurance scheme, and prioritize transparency and accountability in expenditure.

Commenting on the findings, Professor Tanimola Akande, a Public Health expert, highlighted Nigeria’s shortfall in health funding compared to international benchmarks, attributing it to poor health outcomes and infrastructure challenges. He stressed the need for improved budget performance and efficiency in spending to enhance healthcare delivery and reduce dependency on external funding.

The report underscores the urgent need for Nigeria to prioritize and increase investments in health and education to improve public service delivery and foster national development.