The healthcare sector has been a core target of government in Nigeria because of the perceived multiplier or spillover effect on other sectors. Though series of policies, laws and spending have been put in place, indicators of healthcare in Nigeria have been poor and burdened by regional and location disparities. This study sets out to find which segment of the society that might likely benefit from extra investment in the sector. Utilizing the harmonised living standard dataset and employing a marginal benefit incidence analysis, the study found that marginal odds estimates were pro-poor for most southern regions with little urban bias for primary and secondary healthcare different from results from northern regions. On the reflex, the tertiary level estimates were decidedly pro-rich at the margin across regions and locations. The study recommended reforms in the sectors that will be reflected in budgeting and legal frameworks to achieve targets by impact and by need. Reforms that will consider regional specific issues will improve cost efficiency of additional spending. This must be done before additional funding to different levels for sustainable efficiency and effectiveness.   

JEL: D61; H51; H53; H61; P16

Key Words: Public Spending, Benefits on Margin, Healthcare, Regions, Nigeria