Impact Assessment of Credit Policy and Medical Credit Facility (MCF) on Nigerian Private Sector Health Market: Evidence from Eight Nigerian States
A teeming set of doctors that graduated from various
universities within and outside Nigeria with the hope of practicing in
the country, has their hope shattered because of poor financing, lack
of medical equipments and a very weak healthcare systems. Such
hydra headed challenges, allows room for quackery which
increasingly contributes to the cause of mortality in Nigeria. With a
view of reversing the challenges of healthcare delivery and financing
in Nigeria, African Health Market for Equity (AHME), a project
funded by the Bill and Melinda Gates foundation [With contribution
from Department For International Development (DFID)] and
currently implemented in three African Countries (Nigeria, Kenya
and Ghana) over a Five (5) year period supports the healthcare sector
via Medical credit fund (MCF). The study examines the impact of
credit policy and medical credit funding on Nigerian health market.
Ordinary least square analysis, correlation and granger causality tests
were employed to measure the extent to which the Nigerian
healthcare market has been influenced. Medical credit fund
significantly and positively influenced average monthly turnover of
private healthcare providers and Commercial bank’s lending rate had
a weak relationship with access to credit/approved loans (13.46%).
The programme has so far made 13.91% progress, which is very
poor, considering the minimum targeted private health care providers
(437.6) and expected number of loan approvals (180.4) for the two
years. Medical credit policy in Nigeria should be revised to include
private healthcare providers in rural area for more positive impact
and increased returns. Good brand advert and sensitization of the
programme to stakeholders and health pressure group, and an
extension of the programme beyond five years is necessary to better
address the issues raised in the study.
[1] Abu, I. N., Ezike J. E., (2012), “The Role and Sustainability of
Microfinance Banks in Reducing Poverty and Development of
Entrepreneurship in Urban and Rural Areas in Nigeria”, International
Journal of Business Administration Vol. 3, No. 3.
[2] Adeyemi, K. S., (2007), “Banking Sector Consolidation in Nigeria:
Issues and Challenges,” Paper Presented in a Post-Consolidation
Seminar, Union Bank of Nigeria Plc.
[3] Aranda, P., (2010). The Determinants of Health and the Differences in
Healthcare Expenditures among Countries. J. Health Econ. 15:103-118.
[4] Berger, M. C., Messer, J., (2002). Public Financing of Health
Expenditures, Insurance and Health Outcomes. Appl. Econ. 34:2105-
2113.
[5] Eme O. I., Uche, O. A., Uche, I. B. (2014), Building a Solid Health Care
System in Nigeria: Challenges and Prospects, Academic Journal of
Interdisciplinary Studies MCSER Publishing, Rome-Italy, E-ISSN 2281-
4612, Vol 3 No 6
[6] Eneji, M. A., Dickson, V. J., Bisong, J. O., (2013), Health care
expenditure, health status and national productivity in Nigeria (1999-
2012), Journal of Economics and International Finance, ISSN 2006-
9812, Vol. 5(7), pp. 258-272
[7] Global Finance Magazine (2015), Nigeria GDP and Economic Data,
Country Report 2015, Retrieved from: https://www.gfmag.com/globaldata/
country-data/nigeria-gdp-country-report
[8] Awa, H. O., Eze, S. C., (2013), The Marketing Challenges Of
Healthcare Enterpreeurship: An Emperical Invesigation in Nigeria,
British Journal of Marketing Studies Vol.1 No 2, pp.1-16.
[9] Howard, I., (1984). What are the Financial Resources for 2000? World
Health Forum 2(1), 23-29.
[10] Kajang, D. R., (2004), Organization and Management of Health Services
in Nigeria: 1960-2004: (A Case Study of the Federal Ministry of Health,
Abuja, Nigeria), Ph.D. Dissertation on Health System Management, St.
Clements University.
[11] Nurudeen, A., Usman, A., (2010). Government Expenditure and
Economic Growth in Nigeria, 1970-2008; A Disaggregated Analysis.
Bus. Econ. J. 4(1).
[12] Odoko, F. O., (2008), “Beyond finance: Strategies for poverty reduction
in Nigeria”. Central Bank of Nigeria Bullion, 31(1), 35-36.
[13] Ogunbekun, I., Ogunbekun, A., & Orobation, N., (1991), Private
Healthcare in Nigeria Walking the Tightrope. Healthcare Policy and
Planning. 14(2), 174-181. [14] Okolo, C. V., (2015), Impact of Bank Consolidation on Lending to
SMEs in Nigeria, World Academy of Science, Engineering and
Technology, International Journal of Social, Behavioral, Educational,
Economic and Management Engineering Vol: 9, No: 9.
[15] Riman, H. B., Akpan, E. S., (2012), Healthcare Financing and Health
outcomes in Nigeria: A State Level Study using Multivariate Analysis,
International Journal of Humanities and Social Science Vol. 2 No. 15
[16] Trading Economics (2015), Nigeria GDP Per Capita, 1960-2015,
Retrieved From: Http://Www.Tradingeconomics.Com/Nigeria/Gdp-Per-
Capita
[17] Versweyved, L. (1998) Hospital Strategy Put Sharper focus on Care
Management instead of cost reduction needs.
[18] Central Bank of Nigeria statistical bulletin Volume 25, December 2014.
[1] Abu, I. N., Ezike J. E., (2012), “The Role and Sustainability of
Microfinance Banks in Reducing Poverty and Development of
Entrepreneurship in Urban and Rural Areas in Nigeria”, International
Journal of Business Administration Vol. 3, No. 3.
[2] Adeyemi, K. S., (2007), “Banking Sector Consolidation in Nigeria:
Issues and Challenges,” Paper Presented in a Post-Consolidation
Seminar, Union Bank of Nigeria Plc.
[3] Aranda, P., (2010). The Determinants of Health and the Differences in
Healthcare Expenditures among Countries. J. Health Econ. 15:103-118.
[4] Berger, M. C., Messer, J., (2002). Public Financing of Health
Expenditures, Insurance and Health Outcomes. Appl. Econ. 34:2105-
2113.
[5] Eme O. I., Uche, O. A., Uche, I. B. (2014), Building a Solid Health Care
System in Nigeria: Challenges and Prospects, Academic Journal of
Interdisciplinary Studies MCSER Publishing, Rome-Italy, E-ISSN 2281-
4612, Vol 3 No 6
[6] Eneji, M. A., Dickson, V. J., Bisong, J. O., (2013), Health care
expenditure, health status and national productivity in Nigeria (1999-
2012), Journal of Economics and International Finance, ISSN 2006-
9812, Vol. 5(7), pp. 258-272
[7] Global Finance Magazine (2015), Nigeria GDP and Economic Data,
Country Report 2015, Retrieved from: https://www.gfmag.com/globaldata/
country-data/nigeria-gdp-country-report
[8] Awa, H. O., Eze, S. C., (2013), The Marketing Challenges Of
Healthcare Enterpreeurship: An Emperical Invesigation in Nigeria,
British Journal of Marketing Studies Vol.1 No 2, pp.1-16.
[9] Howard, I., (1984). What are the Financial Resources for 2000? World
Health Forum 2(1), 23-29.
[10] Kajang, D. R., (2004), Organization and Management of Health Services
in Nigeria: 1960-2004: (A Case Study of the Federal Ministry of Health,
Abuja, Nigeria), Ph.D. Dissertation on Health System Management, St.
Clements University.
[11] Nurudeen, A., Usman, A., (2010). Government Expenditure and
Economic Growth in Nigeria, 1970-2008; A Disaggregated Analysis.
Bus. Econ. J. 4(1).
[12] Odoko, F. O., (2008), “Beyond finance: Strategies for poverty reduction
in Nigeria”. Central Bank of Nigeria Bullion, 31(1), 35-36.
[13] Ogunbekun, I., Ogunbekun, A., & Orobation, N., (1991), Private
Healthcare in Nigeria Walking the Tightrope. Healthcare Policy and
Planning. 14(2), 174-181. [14] Okolo, C. V., (2015), Impact of Bank Consolidation on Lending to
SMEs in Nigeria, World Academy of Science, Engineering and
Technology, International Journal of Social, Behavioral, Educational,
Economic and Management Engineering Vol: 9, No: 9.
[15] Riman, H. B., Akpan, E. S., (2012), Healthcare Financing and Health
outcomes in Nigeria: A State Level Study using Multivariate Analysis,
International Journal of Humanities and Social Science Vol. 2 No. 15
[16] Trading Economics (2015), Nigeria GDP Per Capita, 1960-2015,
Retrieved From: Http://Www.Tradingeconomics.Com/Nigeria/Gdp-Per-
Capita
[17] Versweyved, L. (1998) Hospital Strategy Put Sharper focus on Care
Management instead of cost reduction needs.
[18] Central Bank of Nigeria statistical bulletin Volume 25, December 2014.
@article{"International Journal of Business, Human and Social Sciences:70996", author = "Chimaobi V. Okolo and Kenneth A. Okpala and Johnbull S. Ogboi", title = "Impact Assessment of Credit Policy and Medical Credit Facility (MCF) on Nigerian Private Sector Health Market: Evidence from Eight Nigerian States", abstract = "A teeming set of doctors that graduated from various
universities within and outside Nigeria with the hope of practicing in
the country, has their hope shattered because of poor financing, lack
of medical equipments and a very weak healthcare systems. Such
hydra headed challenges, allows room for quackery which
increasingly contributes to the cause of mortality in Nigeria. With a
view of reversing the challenges of healthcare delivery and financing
in Nigeria, African Health Market for Equity (AHME), a project
funded by the Bill and Melinda Gates foundation [With contribution
from Department For International Development (DFID)] and
currently implemented in three African Countries (Nigeria, Kenya
and Ghana) over a Five (5) year period supports the healthcare sector
via Medical credit fund (MCF). The study examines the impact of
credit policy and medical credit funding on Nigerian health market.
Ordinary least square analysis, correlation and granger causality tests
were employed to measure the extent to which the Nigerian
healthcare market has been influenced. Medical credit fund
significantly and positively influenced average monthly turnover of
private healthcare providers and Commercial bank’s lending rate had
a weak relationship with access to credit/approved loans (13.46%).
The programme has so far made 13.91% progress, which is very
poor, considering the minimum targeted private health care providers
(437.6) and expected number of loan approvals (180.4) for the two
years. Medical credit policy in Nigeria should be revised to include
private healthcare providers in rural area for more positive impact
and increased returns. Good brand advert and sensitization of the
programme to stakeholders and health pressure group, and an
extension of the programme beyond five years is necessary to better
address the issues raised in the study.", keywords = "Credit, health market, medical credit facility, policy.", volume = "9", number = "9", pages = "3183-7", }