Manufactured Export and Government Spending on Infrastructures in Nigeria (1990 – 2015)

Abstract

Government spending in every fiscal year is aimed at impacting every sector of the economy through the provision of infrastructural facilities required for the production of goods and services; that will enhance the welfare of the citizens. However, poorly developed and decaying infrastructure has been noted to be affecting the financial and operational capabilities of manufacturing companies in Nigeria. This study examined government spending on Infrastructures which are; Roads, Power, Human Capital Development on Export of listed manufacturing companies in Nigeria.. The study adopted ex-post facto research design. The population of the study was 83 listed manufacturing companies in Nigeria as at December 31, 2016, from which a sample size of 20 was purposively selected based on availability of data covering the period from 2001 to 2015. Secondary data were obtained from published financial statements of listed manufacturing companies in Nigeria, publications of government and the World Bank. Validity and Reliability of the data were based on the reports of external auditors and other regulatory agencies. The data were analyzed using descriptive and inferential statistical methods. The study found that government spending on power, roads, security and human capital development; jointly have significant effect on MANUFACTURED EXPORTS. MANEXP F(4, 10) = 10.07, P value associated with the F-value was 0.002, this is less than 0.05 indicating that the the independent variables had significant effect on the dependent variables. R2 = 0.801, Adj R2 = 0.722. However, Government spending on Power had negative but insignificant effect on Manexp (t(26) = -1.57, p>0.05) expenditure on Roads had negative insignificant effect on Manexp (t(26)= -0.234 p>0.05).. Spending on Security had negative but insignificant effect on Manexp (t(26) = -0.490 p>0.05). HCD had positive but insignificant effect on Manexp (t(26) =1.493 p>0.05) The study concluded that government spending on infrastructures did not influence earning from export of manufactured products in Nigeria. It was recommended that government should restructure its pattern of expenditure to make it industry specific so as to re-engineer ailing Nigerian manufacturing companies.