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Allocating sufficient financing for healthcare institutions and policies is a difficult task, especially for a developing country. Currently, Nigerias governmental structure undergoes many critical changes to ensure its prospects. Its health sector is largely under-resourced, which has a detrimental effect on the overall productivity and economic development of the country (1). Alas, the current position of Nigerian healthcare service quality among all countries is among the lowest as it takes 187th place out of 191 with only 5% of its budget allocated to healthcare (2, 3). This paper will examine policies regarding earmarking taxes on luxury goods, such as oil and tobacco, in favor of healthcare improvements.
There are several feasible options for boosting the health sector through governmental policies. Nigeria needs to consider expanding earmarking taxes since this country has the smallest budget allocation, although there is progress toward proper taxation policies (2). Taxation of luxury goods in favor of public healthcare is a viable strategy that is widely acknowledged as highly efficient (2). By holding industries accountable for their impact on public health, Nigeria can provide citizens with essential healthcare services (1). This strategy is known to have a significant positive impact on vulnerable populations. Nigerias neighboring countries, such as Rwanda, have achieved immense success in that field through similar financing mechanisms (3). For example, its recent reforms established a Basic Health Care Provision Fund with a sum of $158.75 mil., which is out of comparison of $469.3 mil. spent on aircraft purchases by the government (4). There are many sources for tax reallocation that can increase the overall quality of life.
In conclusion, Nigerias recent efforts towards improving the state of its health sector are commendable, as the country cracks down on some of the luxury industries with additional taxations that will be preallocated towards healthcare. However, other luxury goods and services, such as private transport, unhealthy food, and cellphone use, remain uncovered by these tax reforms (4). Improvements must be made following the most successful existing practices, and Nigeria slowly but surely adapts them. The state of a health sector is a valid marker of the progress of a developing country.
References
Awosusi A. Nigerias new tax reforms: Implications for the health sector [Internet]. Businessday NG. 2020.
Onubedo G, Akanonu P. Tobacco tax revenue in Nigeria: To earmark or not to earmark? [Internet]. CSEA Africa. 2019.
Nsofor IM, Oluwatola T. Africa: Financing healthcare in Nigeria is beyond allocating 15% of national budget to health [Internet]. allAfrica.com. 2021.
Aregbeshola B. A Tax-based, Noncontributory, Health-Financing System Can Accelerate Progress toward Universal Health Coverage in Nigeria. MEDICC Review [Internet]. 2018;20(4):405.
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