IMPACT OF FOREIGN DIRECT INVESTMENT (FDI) ON HEALTH EXPENDITURE IN NIGERIA.

Foreign Direct Investment (FDI) is often seen as a driver of economic development, bringing capital, technology, and expertise to various sectors, including healthcare. However, its impact on health expenditure in Nigeria remains unclear. This study examines the relationship between FDI and health expenditure in Nigeria using secondary time-series data from 1990 to 2023, sourced from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN).The dependency theory forms the theoretical framework of the study. The Ordinary Least Squares (OLS) and the Fully Modified Ordinary Least Square regression method was employed to assess whether FDI significantly influences health expenditure while accounting for economic growth and government expenditure. The findings reveal that while FDI shows a positive relationship with health expenditure, its impact is statistically insignificant. In contrast, economic growth significantly contributes to increased health spending, highlighting its crucial role in healthcare financing. Interestingly, government expenditure on health appears to have a negative effect, raising concerns about inefficiencies in public healthcare investment. Additionally, due to data limitations, the study could not fully assess FDI’s impact on healthcare accessibility, quality, and private sector investment, leaving room for further
investigation