Financial Management Practices among Patent and Proprietary Medicine Vendors (PPMVs) in Kaduna and Lagos States, Nigeria: A Mixed-Methods Study

Abstract Background Patent and Proprietary Medicine Vendors (PPMVs) provide important healthcare access in rural and underprivileged communities in Nigeria. They are often considered the first line of call for illnesses. PPMVs would need sound financial management practices to actualize sustainable growth. This study investigated the financial management practices of PPMVs in selected Local Government Areas (LGAs) of Kaduna and Lagos states. Method We employed a mixed-methods explanatory sequential design. First, quantitative data were collected from PPMVs in sixteen LGAs of Kaduna and Lagos States, Nigeria, focusing on their business practices, financial management, inventory, and client engagement. This was followed by a qualitative cross-sectional study to contextualize the quantitative findings. Quantitative data were analyzed using descriptive statistics, bivariate tests, and regression models while qualitative data were analyzed thematically. Result Only 32.3% of PPMVs keep financial records, with the majority relying on paper-based systems (94.2%) and minimal use of digital tools, which was exclusive to Lagos (0% vs.100%) and Tier 1 PPMVs (100%), citing challenges related to digital competency. Awareness of loan opportunities was low (13.9%), and only 19.6% of PPMVs have applied for loans, with business tax payment being a significant predictor of loan success (AOR = 2.53; p = 0.045). Kaduna PPMVs were more likely to keep financial records. In both states, except for the use of notebooks in record keeping, there were varying differences in relationships between sociodemographic variables and the operational/financial practices. Generally, Tier 1 PPMVs were more likely to adopt formal financial practices than Tier 2. Conclusion This study underscored the gap in financial practices and operations in PPMVs; these were shaped by gender, tier, and region. The use of digital financial tools was more in Lagos, females and the upper tier of categorization. To close these gaps, strategies should target capacity building and digital tool adoption, in order to catalyse improved access to financial services within these contexts for better sustainability of the PPMVs.