Taxation and incentives in private health services delivery in Nigeria: Opinion of private health practitioners

Abstract

Background: Tax relief and incentives are utilized to encourage the private health sector to provide
services that are advantageous to community health. The aim of this study was to explore the issues
related to taxes paid, incentives provided, returns on investment, satisfaction with practice, and plans of
private health practitioners who were conference attendees in Port Harcourt in 2021.
Methodology: A descriptive cross-sectional study was carried out at two national events in Port
Harcourt, Rivers State, Nigeria in October, and December 2021, among conference attendees using selfadministered questionnaires. Data obtained was analyzed using the IBM Statistical Package for the Social
Sciences (SPSS) version 20.0 and presented in tables.
Results: A total of one hundred and sixty-six (166) respondents were involved in the study. One hundred
and four (62.7%) respondents believed they experienced multiple taxation from agencies of government.
Most respondents paid at least fifty thousand and above as taxes to various levels of government. One
hundred and forty-two (85.5%) respondents believed they did not receive any incentive from
governments for their private health businesses. Fifty-three (31.9%) were not satisfied, while55 (33.1%)
respondents were managing to survive in the business environment.
Conclusion: Private healthcare practitioners in Nigeria experience multiple taxation and a lack of
incentives from governments. Dissatisfaction with the return on investment is prevalent. Inclusive health
sector reform that will partly reduce the potential for brain drain is therefore needed.