This study examines the relationship between health status and economic growth in Nigeria, while focusing on the moderating role of finance in this relationship. Using annual time series data spanning 1990 to 2022, the study employs the Autoregressive Distributed Lag (ARDL) model and the Granger causality test to analyze the short- and long-run effects of health indicators—life expectancy at birth and infant mortality rate on economic growth, while also investigating the moderating influence of financial development. The findings reveal that while improvements in life expectancy positively influence economic growth, this effect is more pronounced in the long run. The findings also revealed that a reduction in infant mortality significantly boosts economic growth in both the short and long run. Furthermore, the results also demonstrate that education plays a critical role in enhancing economic performance, which reinforces the significance of human capital development. However, financial development as a moderating factor yields mixed results. While financial development amplifies the positive impact of life expectancy on economic growth in the short run, its influence is statistically insignificant in the long run. Similarly, financial development does not effectively mitigate the negative impact of high infant mortality on economic growth. This suggests the presence of inefficiencies in financial resource allocation. Hence, these findings underscore the need for sustained investments in health and education alongside financial sector reforms to maximize the economic benefits of improved health outcomes.
David Sunday Oyerinola (Mon,) studied this question.