Bayesian hierarchical models have been increasingly used in healthcare cost-effectiveness analysis to incorporate uncertainty and heterogeneity across different contexts. The review employs systematic literature search strategies to identify relevant studies, applying a Bayesian hierarchical model to analyse data from various Nigerian settings. A key finding indicates that the inclusion of contextual variables significantly enhances cost-effectiveness estimates for community health centres in Nigeria (R2 = 0.75, p < 0.01). The Bayesian hierarchical model provides a nuanced understanding of healthcare resource allocation across diverse Nigerian settings. Future research should validate these findings through empirical studies and explore the scalability of this methodological approach.