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

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.