Al-Hikmah University Journal

This study examined the impact of household out-of-pocket spending and health shocks on poverty in Nigeria. Time series data were obtained from World Development Indicators (WDI) from 1988 to 2021. Poverty was proxied by Real Income Per Capita (RIPC) in one model and Secondary School Enrollment (SSE) in another model. The independent variables were Maternal Mortality Rate (MMR), Malaria Incidence Rate (MIR), Life Expectancy (LEXP) and Out of Pocket Expenditure on Health (OOPEX). The study used the Least Squares Regression method to estimate both the short-run error correction model and the long-run estimates. The findings revealed a significant negative impact of OOPEX and MIR on both RIPC and SSE. LEXP also has a significant positive impact on RIPC and SSE. However, MMR has an insignificant impact on RIPC and SSE. Based on the findings, the study recommends that to reduce poverty, the government need to enhance financial protection, improve maternal health services, combat malaria and improve healthcare infrastructure.