Analysis of Ill-health Burden on Small-holder Agricultural Households' Welfare in Nigeria

Abstract

This study empirically examined the economic burden of ill-health and the pathway of negative consequences of ill-health disability on small-holder agricultural households’ welfare (income and food spending) in Nigeria. The Nigeria’s Living Standard Measurement Study - Integrated Survey on Agriculture panel data (2010/11, 2012/13 and 2015/16) were used. Data analysis tools were descriptive statistics, cost of illness approach, and panel data instrumental variable regression model. Agricultural households whose members experienced ill-health disability had high direct and indirect costs of ill-health, with negative welfare consequences on the affected households. Direct costs included the Out of Pocket (OOP) healthcare and other related costs; indirect cost was the cost of lost productive time to the households. The proportion of indirect cost to the average total cost of ill-health was 65%. As a proportion of households’ income, estimates of direct cost was about 19%, and indirect cost was 39%. Results revealed that the pathway by which the burden of ill-health disability affected households’ welfare is through increased OOP healthcare expenditure and reduction in food budget. This study recommended the expansion of government-funded healthcare insurance to cover small-holder agricultural households and protect them from the direct and indirect burden of ill-health. Recognizing that findings are ceteris paribus, other complementary health financing efforts through the private sector, community-based initiatives and non-profit organizations in form of grants, loans and/or health related social corporate responsibility services are advocated to reduce productive days lost to ill-health and OOP payments which undermine agricultural production and household welfare.