Effect Of Health Shock On Household Poverty In Nigeria

• Sunday Benjamin Shido-Ikwu

  Department of Economics and Development Studies, Federal University of Kashere, Gombe State

  Author

• Idowu Daniel Onisanwa

  Department of Economics and Development Studies, Federal University of Kashere, Gombe State

  Author

• Mohammed Inuwa Dauda

  Department of Economics and Development Studies, Federal University of Kashere, Gombe State

  Author

The primary cause of ill health in developing nations such as Nigeria is poverty and one of the biggest obstacles to Nigeria’s development has been the incapacity to provide for the medical demands of this impoverished population. This study examined the effect of health shock on household poverty in Nigeria. The analysis is based on a longitudinal panel dataset comprising five waves of the Nigeria General Household Survey (NGHS): 2010/2011, 2012/2013, 2015/2016, 2018/2019, and 2023/2024 using fixed-effects regression techniques. This study uses sickness shock as measure of health shock and debt ratios to measure poverty, specifically debt-to-income and debt-to-consumption ratios was used which consequently leads to impoverishment of household. The findings indicates that there is a positive and significant relationship between severe illness and debt-to-consumption ratio. The result also reveals that the relationship between sickness and debt-to-income ratio is not statistically significant, and thus there is insufficient evidence to conclude that sickness shocks have a meaningful impact on this measure of poverty. The study recommends the need for comprehensive social safety nets and accessible health care systems to buffer households against the economic consequences of illness. 

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