Volume 122, Issue 2 p. 94-98
Clinical articles

Willingness to pay and benefit–cost analysis of modern contraceptives in Nigeria

Obinna Onwujekwe

Obinna Onwujekwe

Health Policy Research Group, Department of Pharmacology and Therapeutics, College of Medicine, University of Nigeria, Enugu, Nigeria

Department of Health Administration and Management, College of Medicine, University of Nigeria, Enugu, Nigeria

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Chinwe Ogbonna

Chinwe Ogbonna

United Nations Population Fund, Abuja, Nigeria

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Ogochukwu Ibe

Corresponding Author

Ogochukwu Ibe

Health Policy Research Group, Department of Pharmacology and Therapeutics, College of Medicine, University of Nigeria, Enugu, Nigeria

Corresponding author at: Health Policy Research Group, Department of Pharmacology and Therapeutics, College of Medicine, University of Nigeria, PMB 01 129 Enugu, Nigeria. Tel.: + 234 806 15 58346.Search for more papers by this author
Benjamin Uzochukwu

Benjamin Uzochukwu

Health Policy Research Group, Department of Pharmacology and Therapeutics, College of Medicine, University of Nigeria, Enugu, Nigeria

Department of Community Medicine, College of Medicine, University of Nigeria, Enugu, Nigeria

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First published: 19 June 2013
Citations: 11

Abstract

Objective

To determine the willingness to pay (WTP) and the benefit–cost of modern contraceptives delivered through the public sector in Nigeria.

Methods

Data were collected from 4517 randomly selected households. The WTP for the 6 major contraceptive methods available in the public sector was elicited. Logistic regression was used to determine whether the decision to state a positive WTP amount was valid; Tobit regression was used to test the validity of the elicited WTP amounts. For each contraceptive, 3 BCR values were computed, based on the official unit price, the unit cost per couple-year of protection (CYP), and the average actual expenditure for contraceptives in the month preceding the interview.

Results

The mean WTP for the different contraceptives varied by socioeconomic status and geographic (urban versus rural) location (P < 0.01). The BCR analysis showed that the benefits of providing contraceptives through the public sector far outweighed the costs, except for female condoms, where the CYP-based BCR was 0.9.

Conclusion

The benefits of providing contraceptives outweigh the costs, making public sector investment worthwhile. The median WTP amounts, which reflect the ideal upper thresholds for pricing, indicate that cost recovery is feasible for all contraceptives.