Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria

In this study, we provide the first estimates of the effect of COVID-19 (COVID-19 legal restrictions) on catastrophic medical expenditure and forgone medical care in Africa. Data for this study were drawn from the 2018/19 Nigeria General Household Survey (NGHS) panel and the 2020/21 Nigeria COVID-19...

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Main Authors: Henry Chukwuemeka Edeh, Alexander Uchenna Nnamani, Jane Oluchukwu Ozor
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:Economies
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Online Access:https://www.mdpi.com/2227-7099/13/5/116
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author Henry Chukwuemeka Edeh
Alexander Uchenna Nnamani
Jane Oluchukwu Ozor
author_facet Henry Chukwuemeka Edeh
Alexander Uchenna Nnamani
Jane Oluchukwu Ozor
author_sort Henry Chukwuemeka Edeh
collection DOAJ
description In this study, we provide the first estimates of the effect of COVID-19 (COVID-19 legal restrictions) on catastrophic medical expenditure and forgone medical care in Africa. Data for this study were drawn from the 2018/19 Nigeria General Household Survey (NGHS) panel and the 2020/21 Nigeria COVID-19 National Longitudinal Phone Survey panel (COVID-19 NLPS). The 2020/21 COVID-19 panel survey sample was drawn from the 2018/19 NGHS panel sample monitoring the same households. Hence, we leveraged a rich set of pre-COVID-19 and COVID-19 panel household surveys that can be merged to track the effect of the pandemic on welfare outcomes. We found that the COVID-19 legal restrictions decreased catastrophic medical expenditure (measured by out-of-pocket (OOP) expenditures exceeding 10% of total household expenditure). However, the COVID-19 legal restrictions increased the incidences of forgone medical care. The results showed a consistent positive effect on forgone medical care across waves one and two, corresponding to full and partial implementation of COVID-19 legal restrictions, respectively. However, the negative effect on catastrophic medical spending was only observed when the COVID-19 legal restrictions were fully in force, but the sign reversed when the restriction enforcement became partial. Moreover, our panel regression analyses revealed that having health insurance is associated with a reduced probability of incurring CHE and forgoing medical care relative to having no health insurance. We suggest that better policy design in terms of expanding the depth and coverage of health insurance will broaden access to quality healthcare services during and beyond the pandemic periods.
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spelling doaj-art-c1d019fe5168496d8ccfc621b19c2b402025-08-20T02:33:44ZengMDPI AGEconomies2227-70992025-04-0113511610.3390/economies13050116Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in NigeriaHenry Chukwuemeka Edeh0Alexander Uchenna Nnamani1Jane Oluchukwu Ozor2Department of Economics, University of Nigeria, Nsukka 410001, NigeriaInstitute for Development Studies, University of Nigeria, Enugu 400241, NigeriaDepartment of Economics, University of Nigeria, Nsukka 410001, NigeriaIn this study, we provide the first estimates of the effect of COVID-19 (COVID-19 legal restrictions) on catastrophic medical expenditure and forgone medical care in Africa. Data for this study were drawn from the 2018/19 Nigeria General Household Survey (NGHS) panel and the 2020/21 Nigeria COVID-19 National Longitudinal Phone Survey panel (COVID-19 NLPS). The 2020/21 COVID-19 panel survey sample was drawn from the 2018/19 NGHS panel sample monitoring the same households. Hence, we leveraged a rich set of pre-COVID-19 and COVID-19 panel household surveys that can be merged to track the effect of the pandemic on welfare outcomes. We found that the COVID-19 legal restrictions decreased catastrophic medical expenditure (measured by out-of-pocket (OOP) expenditures exceeding 10% of total household expenditure). However, the COVID-19 legal restrictions increased the incidences of forgone medical care. The results showed a consistent positive effect on forgone medical care across waves one and two, corresponding to full and partial implementation of COVID-19 legal restrictions, respectively. However, the negative effect on catastrophic medical spending was only observed when the COVID-19 legal restrictions were fully in force, but the sign reversed when the restriction enforcement became partial. Moreover, our panel regression analyses revealed that having health insurance is associated with a reduced probability of incurring CHE and forgoing medical care relative to having no health insurance. We suggest that better policy design in terms of expanding the depth and coverage of health insurance will broaden access to quality healthcare services during and beyond the pandemic periods.https://www.mdpi.com/2227-7099/13/5/116COVID-19catastrophic medical expenditureforgone medical carelegal restriction
spellingShingle Henry Chukwuemeka Edeh
Alexander Uchenna Nnamani
Jane Oluchukwu Ozor
Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
Economies
COVID-19
catastrophic medical expenditure
forgone medical care
legal restriction
title Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
title_full Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
title_fullStr Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
title_full_unstemmed Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
title_short Effect of COVID-19 on Catastrophic Medical Spending and Forgone Care in Nigeria
title_sort effect of covid 19 on catastrophic medical spending and forgone care in nigeria
topic COVID-19
catastrophic medical expenditure
forgone medical care
legal restriction
url https://www.mdpi.com/2227-7099/13/5/116
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AT alexanderuchennannamani effectofcovid19oncatastrophicmedicalspendingandforgonecareinnigeria
AT janeoluchukwuozor effectofcovid19oncatastrophicmedicalspendingandforgonecareinnigeria