THE IMPACT OF REMITTANCES ON HEALTH SECTOR IN NIGERIA

This study examined the impact of remittances on the health sector in Nigeria for the period of 1981-2019. The main objective of this research work is to examine the impact of remittances on the health sector in Nigeria. The study used Error Correction Mechanism (ECM) to examine the relationship between remittances and health sector in Nigeria. The study found the level of remittances has both a positive and significant impact on the health sector both in the short and long run. Also, level of expenditure on education was found to have both a positive and significant impact on the health sector both in the short and long run. Also, level of physical capital was found to have a positive and significant impact on the health sector both in the short and but a positive and insignificant impacton it in the long run. Finally, Real GDP was found to have a positive and significant on the health sector in the short run but a negative and insignificant impact on the health sector in the long run. Seeing that remittances is a catalyst to the health sector, the study therefore recommends that the costs of transfer of remittances can be waived or significantly reduced if it is specifically tagged for healthcare. Still building on the defiscalization of migrant savings linked to payments for healthcare in source
country in order to attract more remittances from abroad. Also, the government should constantly review upward of budgetary allocation to education sector in Nigeria. This will increase health education of Nigerians and in the long run boost the health sector and economy at large.