Government Expenditure on Substance Abuse and Economic Growth in Nigeria: An Analytical Approach

Abstract

The study specifically examined the short and long run impact government expenditure on substance abuse prevalence and rehabilitated drug addicts on the real growth rate on the Nigeria economy. Real Growth rate was made the dependent variable while government capital expenditure, government recurrent expenditure and number of rehabilitated drug addicts stood as explanatory variables. Analysis was carried using the ARDL technique. Findings revealed that there existed, in the short run, a significant impact of government recurrent, capital expenditure and rehabilitated drug individuals on real economic growth. However, in the long run, only capital expenditure on substance abuse has significant impact on the real growth rate in the Nigeria economy. It is therefore suggested that, combating the menace of drug abuse prevalence and trafficking needs the co-operation of all. To that extent government and non-government organization at both local and international level must network to ensure effective control. Therefore, adequate funds should be made available to government organization involved in drug demand reduction activities. Employment opportunities should also be created by the government to get user/ traffickers out of the illegal business. Massive preventive drug abuse education and enlightenment that emphasize healthy life style should be embarked upon frequently.