Marginal Benefit Incidence Analysis of Public Spending in Nigeria

PEP-PMMA Working Paper series 2011-03

43 Pages Posted: 15 Apr 2011 Last revised: 11 Jul 2018

Date Written: January 1, 2011

Abstract

This study estimates the progressivity of benefit, the average benefit incidence and the marginal benefit incidence of public spending on selected public services in Nigeria, using data from the Nigeria Bureau of Statistics (NBS) 2004 Living Standard Household Survey. The analyses were carried out using Distributive Analysis Stata Package (DASP) 2.1. The results of the analyses show that spending on public services in Nigeria is not pro-poor. The marginal benefit incidence of spending on public services in Nigeria indicates that the poorest group only benefits more than the richest group from extra spending on public services which they already have relatively high access to. Finally, we use the findings of this study to formulate policy recommendations to make public spending in Nigeria pro-poor in order to accelerate the speed at which the poor enjoy additional benefits from increased access to public services in the country.

Keywords: Marginal Benefit, Public Spending, Nigeria

JEL Classification: H50, H51, H52, H53, H54

Suggested Citation

Alabi, Reuben Adeolu and Adams, Oshobugie Ojor and Chime, Chinonso Chinyere and Aiguomudu, Ebehimerem Edith and Abu, Sifawu Omokhefue, Marginal Benefit Incidence Analysis of Public Spending in Nigeria (January 1, 2011). PEP-PMMA Working Paper series 2011-03, Available at SSRN: https://ssrn.com/abstract=1809018 or http://dx.doi.org/10.2139/ssrn.1809018

Reuben Adeolu Alabi (Contact Author)

Ambrose Alli University ( email )

PMB 14 Ekpoma
Ekpoma, 310001
Nigeria

Oshobugie Ojor Adams

Independent ( email )

Chinonso Chinyere Chime

Independent ( email )

Sifawu Omokhefue Abu

Independent ( email )

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