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 One of the cardinal objectives of good government is to have effective healthcare delivery system put in place for the entire citizenry. A healthy nation is a wealthy nation because of the absence of debilitating diseases and epidemics in such a country, which, along with hunger and squalor, impoverishes the citizenry (Nwatu, 2000:12). Ensuring adequate nutrition, high life expectancy, and very low incidence of epidemics and diseases has been acknowledged as most important duty of any government. Unfortunately, in most developing countries (including Nigeria) poor state of the nations' healthcare system reinforces poverty and squalor to further deteriorate living conditions (Nwosu, 2002:8). The indispensability of good healthcare system in national development underlies the governments commitment to providing adequate healthcare services since Nigeria attained political independence in 1960 (Ugbaja, 2003:6). in terms of cost and delivery, the Nigerian healthcare system was adjudged effective and efficient in the periods of the 1960s and up to the late 1970s, by the early 1980s shortage of health facilities including drugs and personnel had set in resulting in rising cost of healthcare services. The situation seemed to favour private sector health institutions which were enjoying relative boost in patronage as the general poor state public healthcare system continued deteriorating. According to Abacha (1985:3), the public hospitals had become (consulting clinics" Given the rapid population growth rate, what the nation needed was a commensurate increasing level of are services. But the decreasing finance of the government oil left the government with no other choice than reducing budgetary allocation to the health sector (Ozuh, 2004:30) prior to the government almost solely financed health services in public health institutions. But by the turn of the 1980s, it had become joint responsibility of the government and the citizens (Ughamadu, 2003:23). In other words both the government and the citizens shared the costs of healthcare services in public health institutions with the greater burden weighing heavily on the government. Subsidization of healthcare services was paramount in healthcare budgetary allocation. As a panecea to the increasing depending on the government for social services, the international monetary fund (IMF) packaged some economic reforms among which was removal of subsides in the oil and health sectors. This is a precondition for the granting of a $2.5 million loan to Nigeria. The rejection of the loan led the government to implement some aspects of the conditionalities including reduction of healthcare financing (Olaghere, 2000:42). This was also in response to the call by participants in a conference organized by the federal government to deliberate on alternative ways of funding the health sector. The participants, among other things; called for joint healthcare services financing (Obadan, 2002:10), Thus, in line with the public sector reforms, the health sector reform became paramount with adequate financing as its cardinal objective. The culminated with the introduction ^r launching of the National Healthcare insurance Scheme (NHIS) on June 6, 2005 by the Federal Government. According to Umar (2005:13) the NHIS represents a milestone in the quest for adequate financing of healthcare services in the country. From both internal and external sources, Nigeria's health sector expenditure amounted to 1.95% of the GNP in 2003 or $4.8 per capital External sources financed 50.2% while internal sources accounted for 49.8% Direct financing method was increasingly advocated for as a source of additional resources for healthcare services. The methods includes user - fees and pre-payment schemes. User- fees and drug sales are the methods most frequently used because of their greater administrative simplicity (Oduenyi, 2003:21). Topically, the revenues generated by user-fees in the public sector are rather modest, thus, increasing government burden in health financing. This gives justification for the National Health Insurance Scheme.

Project detailsContents
Number of Pages92 pages
Chapter one Introduction
Chapter two Literature review
Chapter three  methodology
Chapter  four  Data analysis
Chapter  five Summary,discussion & recommendations
Chapter summary1 to 5 chapters
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