General Introduction
1.1 Background of the Study
A healthy workforce is an important economic asset. Health is a core contributor to an individual‘s productivity. Improved health supports labour productivity by augmenting life expectancy, and enhancing workers’ productivity by increasing both physical and mental capacities. Sick people are unproductive and with an increased number of sick people, the number of workforce is reduced. Health financing involves the basic functions of revenue collection, pooling of resources, and purchase of interventions.
World Health Organization Commission on Macroeconomics and Health in their 2001 report made a strong economic case for investing in health, which they said, will increase workforce productivity and eventually economic growth (WHO, 2001).
It is in view of the above that financing health is significant to making health charged with the task of strengthening workforce for increased productivity. Financing Health in Nigeria is from a variety of sources that include budgetary allocations from Government at all levels (Federal, States and Local). The Federal Government’s role is mostly limited to coordinating the affairs of the universityteaching hospitals, the State Government manages the various general hospitals while the Local Government focuses on health centers anddispensaries (Vogel, 1993). Loans, grants, private sector contributions, donor contributions − bilateral, multilateral, NGOs, and out of pocket expenses form the other part of health financing (Public Expenditure Review, 2009).
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