June 18, 2013

Public Spending On Education And Health In Nigeria

The paper conducts a Benefit Incidence Analysis to determine if public expenditure in education and health sector in Nigeria is pro-poor or pro-rich.

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OBJECTIVE

  • Determine how to answer the question: Is public expenditure in education andhealth sector in Nigeria pro-poor or pro-rich?

BASIC CONCEPT

  • BIA as a tool focuses on how government subsidies affect the distribution ofwelfare in the population. It addresses the issue of supply and demand forpublic services and delivers information on efficiency and equity ingovernment allocation of resources for social services and on the publicutilization of these resources. The central idea behind BIA is to gain a betterinsight into how government funds are distributed across differentincome/expenditure groups or if spending is in reality targeted to eitherworse-off or better-off households.
  • Commonly used to examine the impact of public expenditure
  • Analysis applicable to direct transfers or transfers obtained from consumingsubsidized goods or services
  • This is the first attempt to conduct a rigorous BIA in Nigeria on howeffectively the Nigerian government is



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Nigeria Economic Update (Issue 4)

Recently released power sector report by the National Bureau of Statistics records a total average energy generation of 2,548GWH by 25 power stations, from October 2016 to December 2016. Daily Energy generation, attained the 2016Q4 highest level of 3,859.6MW in October 2016, and a lowest level of 2522MW in the same month. On the average, current daily energy generated which is below 3,000MW, prompts system malfunctions. Thus, the irregular power generation and supply experienced in recent times is attributable to shortage of gas owing to non-functional major pipelines, in addition to the inability of GENCOs to make payments for the available gas supply. Given the recent challenges to power supply, efforts should be geared towards the diversification of electricity generation. Government should consider investment in renewable as well as coal energy to complement gas power supply.