73 © 2021 by the authors; licensee Asian Online Journal Publishing Group Asian Journal of Economics and Empirical Research Vol. 8, No. 2, 73-80, 2021 ISSN(E) 2409-2622 / ISSN(P) 2518-010X DOI: 10.20448/journal.501.2021.82.73.80 © 2021 by the authors; licensee Asian Online Journal Publishing Group Analysis of the Effect of Private Healthcare Financing on Poverty in Nigeria: Evidence from Edo State Olaniyi, O. 1 Abubakar Idris 2  ( Corresponding Author) 1 Department of Economics, University of Abuja, Federal Capital Territory, Abuja, Nigeria. Email: poolaniyi@yahoo.co.uk Tel: 08039661576 2 Department of Economics, Edo State University, Uzairue, Edo State, Nigeria. Email: idrisbakr@yahoo.com Tel: 08038220298. Abstract Poverty is one of the problems that challenge economies in Africa. Though it is a complex phenomenon which requires efforts by different experts to reduce or eliminate, conventional wisdom posits that “health is wealth”. Health status is a component of human capital development which plays a fundamental role in the poverty and well-being of individuals and national economies. Paradoxically the cost of accessing quality healthcare is an important contributor to income poverty among low income households. Thus adequate healthcare financing mechanisms (public and private) are required to attain quality health outcomes. This study therefore investigates the adequacy or otherwise of the current means of private health care financing in Edo state of Nigeria and it employed the survey method and multinomial logistic regression technique. Results revealed that the dominant means of private health care financing in Edo state is “out of pocket” payments which has negative effect on the income of households. It therefore recommends the introduction of a more effective collective healthcare financing mechanism to mitigate the financial burden associated with out-of-pocket spending. Also funding should be provided for research and development of locally manufactured drugs with high local content to enhance the availability and affordability of effective drugs. Keywords: Healthcare financing, Health status, Out-of-Pocket payment, Poverty, Multinomial logistic, Households. JEL Classification: C83; D14; E24; H51; I11; I12; I13. Citation | Olaniyi,O.; Abubakar Idris (2021). Analysis of the Effect of Private Healthcare Financing on Poverty in Nigeria: Evidence from Edo State. Asian Journal of Economics and Empirical Research, 8(2): 73-80. History: Received: 20 July 2021 Revised: 19 August 2021 Accepted: 8 September 2021 Published: 22 September 2021 Licensed: This work is licensed under a Creative Commons Attribution 3.0 License Publisher: Asian Online Journal Publishing Group Acknowledgement: Both authors contributed to the conception and design of the study. Funding: This study received no specific financial support. Competing Interests: The authors declare that they have no conflict of interests. Transparency: The authors confirm that the manuscript is an honest, accurate, and transparent account of the study was reported; that no vital features of the study have been omitted; and that any discrepancies from the study as planned have been explained. Ethical: This study follows all ethical practices during writing. Contents 1. Introduction ...................................................................................................................................................................................... 74 2. Literature Review ............................................................................................................................................................................ 75 3. Theoretical Framework .................................................................................................................................................................. 75 4. Results ................................................................................................................................................................................................ 77 5. Summary of Major Findings .......................................................................................................................................................... 79 6. Conclusion and Policy Recommendations .................................................................................................................................. 79 References .............................................................................................................................................................................................. 79