The Effect of Government Expenditure on Nigerian Economic Growth: 1987 - 2017

Abstract

The paper sought to know effect of Government Expenditure on Nigeria Economic Growth from 1981 – 2017. The study used secondary data from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) and adopted the Ordinary Least Square (OLS) Regression Analysis technique for analysis. The results from the analysis show that there is a positive correlation between Inflation, Money Supply, Government Consumption and Expenditure. Time Series data used in the model includes those on gross domestic Product (GDP} and other different structures of government. The Results indicate that government expenditure has a significant effect on economic growth, though the significance is a form of dependent. i.e. the form of government expenditure considered. Also, capital and recurrent expenditure have significant effect on economic growth but in varying degrees and extent. Finally, it was found out that capital expenditure would have exert positive impact on the level of economic growth but for the issue of corruption and institutional oddity in Nigeria though the intended capital expenditure is indirectly converted to recurrent expenditure somehow which has its own effect on the Economic growth.