Domestic Resource Mobilization and Under-Five Mortality in Nigeria

Abstract

This study considered domestic resource mobilisation and allocation to healthcare service delivery due to the high rate of infant deaths in Nigeria. Value addition in the agricultural sector is captured as a major source of revenue which could be channelled towards increased government expenditure in healthcare. As such, the paper applies vector error correction technique on yearly data for the period 1981 to 2015. It investigates the long-run relationship and short-run dynamics between under-five mortality on the one hand, with female literacy, agricultural productivity, tax revenue, and gross capital formation on the other hand. Outcome of the study indicates, from a long run perspective, under-five mortality is positively related to tax revenue, female literacy rate and gross capital formation. However, there is a negative relationship between under-5 mortality and agricultural productivity. Moreover, as Nigeria diversifies away from crude oil towards agriculture, increased productivity and tax revenues could be channelled towards better health outcomes and rural transformation. Furthermore, enhanced management of tax and better budgeting towards the agricultural sector is recommended. In addition, infrastructure development, agro-allied investments will ensure reduction in agricultural waste and supply costs. The outcomes portend significant relevance for meeting Sustainable Development Goals 2, 3, 4, & 10.