Government Budgets and Economic Development in Nigeria: An Empirical Investigation

Abstract

This study investigates the impact of government spending on Nigeria's economic growth. The study used ex-post facto and longitudinal research approaches to examine the role of several government budgetary factors on Nigeria's economic development as measured by gross national product during 21 years (2001-2021). For this research, secondary data were gathered from the Federal Ministry of Finance's Budget Office publications and the Central Bank of Nigeria's Statistical Bulletin and Bulletin. The analysis used a cointegrating regression model with a fully modified ordinary least squares model. The fully modified least square model was used to ascertain the combined impact of yearly budgeting drivers on GNP in Nigeria. The study found that CEX, INFR, and REX significantly influenced GNP, but DS and EXCHR did not significantly influence GNP. According to the study, Nigeria's economic growth and development are greatly influenced by government budgets. In order to guarantee that the budget's advantages are realised and to support economic development in Nigeria, the research advised that the government assess the performance of the yearly budgeting variables, system, and execution.