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The study examines the effect of health financing using insurance on child undernutrition, employing data from the 2018 Nigerian demographic and health survey. Undernutrition still contributes to child deaths in Nigeria, and health financing with regards to having health insurance, is yet to become a reality for many households. Despite several studies on the determinants of undernutrition, there remains the need for an examination of the effect of health financing, with a focus on health insurance. Using the NDHS, this study examined the effect of health insurance on the probability of child stunting and wasting. A limited dependent variable model was estimated using the maximum likelihood estimator; capturing urban and rural differentials, and an interaction model. The findings demonstrated a significant reduction in the likelihood of stunting in children both at national level and among rural households with health insurance. However, it significantly reduced the likelihood of wasting in children only among rural households. Not having a health insurance coverage, which was the case for a greater proportion of women, was found to significantly increase stunting, even among educated women; reduce wasting only if a woman is from a rich household; and increase wasting among rural households. Therefore, developing and implementing policies geared towards promoting wider and more inclusive health insurance coverage is important for improving child nutritional status and, consequently, the health status of children. [ABSTRACT FROM AUTHOR] more...