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 25)

Crude oil price continued to increase in the period under review, reaching its 2016 peak at $50.30 on June 2, 2016. Specifically, OPEC weekly basket price increased by 1.43 percent from $44.65 on May 27, 2016 to $45.29 on June 3, 2016. Brent was sold for $49.96 on June 3, 2016. The present rise in crude oil price can be attributed to oil production shocks in several oil-exporting countries, and the general expectation of a further cut in output following the OPEC meeting in Vienna on June 2, 2016. However, the OPEC meeting ended with no agreement on production quotas. In Nigeria, oil production level increased in the period under review, following repairs on some of the damaged oil and gas facilities. Precisely, Nigerias output increased by 200,000 barrels on June 3, 2016 to 1.6 million barrels.