Effect of Inflation Rates on The Financial Performance and Sustainability of Public Healthcare Companies in Nigeria

Abstract

This study investigates how inflation affects public healthcare companies’ financial performance and sustainability in Nigeria and suggests measures to make them more resilient in an inflationary climate. A quantitative research design was adopted. Data for the corporate performance were extracted from the annual accounts of the sampled firms. In contrast, the data for independent variables were extracted from the Central Bank of Nigerian Statistical Bulletin from 2012 to 2022. The Cost-push inflation theory was adopted. The Pearson Moment of correlation and regression analysis coefficient was employed to test the hypotheses. The result revealed specifically that the inflation rate has an adverse insignificant effect on financial performance. In contrast, the exchange rate and money supply have negative and positive statistical significance on healthcare firms' economic performance in Nigeria. However, the overall result showed that macroeconomics significantly affects the financial performance of public healthcare firms in Nigeria, indicating that inflation rate conditions substantially decrease and increase the effect on the performance of firms in Nigeria. Based on the findings, the study concluded that the inflation rate was not significant and therefore recommended that the government ensure that inflation has a pleasing effect on the public healthcare organisation’s operations and outcomes, as preventing inflation positively affects individuals, agencies and the country’s financial system. The findings of this study will enlighten policymakers, healthcare providers, and stakeholders about the sector’s specific issues and offer evidence-based recommendations to alleviate the detrimental impacts of inflation.