Government Expenditure In Nigeria Research Articles

PUBLIC SECTOR FINANCIAL MANAGEMENT REFORMS AND GOVERNMENT EXPENDITURE IN NIGERIA


 In Nigeria, governmental inefficiencies and mismanagement of public resources have led to challenges in fulfilling societal needs effectively. To address these issues, various financial management reforms have been implemented, aiming to enhance transparency, accountability, and efficiency. However, the impact of these reforms on government expenditure remains uncertain due to persistent corruption and operational challenges. This study investigates the influence of public sector financial management reforms, including the Government Integrated Financial Management Information System (GIFMIS) and the Integrated Personnel and Payroll Information System (IPPIS), on government expenditure in Nigeria. A conceptual framework is proposed to understand the relationship between these reforms and expenditure. Theoretical and empirical reviews provide insights into the context and previous findings related to financial management reforms. The methodology involves survey research and secondary data analysis, focusing on 16 years of data from federal ministries. Descriptive statistics and regression analysis are used to analyze the data. Results suggest mixed findings regarding the impact of GIFMIS and IPPIS on government expenditure, with some indications of potential effects but inconclusive statistical significance. Discussion of findings highlights the complexity of reform implementation and the need for further research to inform policy decisions effectively. Recommendations include conducting comprehensive studies, enhancing monitoring mechanisms, capacity building, addressing implementation challenges, promoting transparency, sustaining political will, sharing best practices, and engaging stakeholders.
 Keywords: Public Sector Financial Management Reforms, Government Expenditure, GIFMIS, IPPIS, Nigeria, Governance.

The Nexus Between Public Revenue and Government Expenditure in Nigeria

This study examined the effect of government revenue on government expenditure in Nigeria. The study used a retrospective research design and data was obtained from a statistical bulletin from the OECD, CBN, IFRS and National Bureau of Statistics for the period 1981 to 2020. Descriptive statistics, correlation and multiple regression analysis were used to analyze the data based on SPSS 20.0 and the Advanced Excel Analytical Toolkit 2018 package. The result revealed a positive and statistically significant relationship between corporate income tax (CIT) and Government Capital Expenditure (GCE). The relationship between Value Added Tax (VAT) and Government Capital Expenditure (GCE) is also positive and statistically significant. Furthermore, CIT and VAT have been shown to have a positive and statistically significant relationship with government recurrent expenditure (GRE), respectively. Thus, the study reveals a significant relationship between government revenue and government expenditure in Nigeria. Among other things, we recommend that the government increase the number of goods on which Nigeria is subject to VAT to expand net VAT revenue as well as the collection of other indirect taxes to improve all public spending on Nigeria's economic growth - in line with Keynesian theory of expenditure and economic growth. Furthermore, in order to increase revenue for the CIT, according to Adolf Wagner's law of increasing public spending, the government must use tax money to create a favorable economic environment that stimulates high levels of industrial activity, thereby greatly affecting corporate performance and profits.

Effect of Government Expenditure on Inflation in Nigeria

This study examined the effect of government expenditure on inflation in Nigeria while disaggregating expenditure into capital and recurrent. The study also examined the response of inflation to changes in government expenditure in Nigeria. Secondary data collected from the Central Bank of Nigeria Statistical Bulletin was employed for a period of thirty-eight years (i.e. 1981-2019). The Auto Regressive Distributed Lag technique was employed. For the first model explaining government capital expenditure, short run estimates reveal that in the current period, government capital expenditure has a significantly negative relationship with inflation. For government recurrent expenditure, it was established that government recurrent expenditure has a positive relationship with inflation. The impulse response test used in analyzing the effect of an unanticipated change in government expenditure (capital and recurrent) on inflation shows that the effects of the change in both cases are temporary as they are seen to revert to the mean. The study recommends that the government should maintain a good strategic balance between capital and recurrent expenditure to prevent the economy from being consumption - based.

The Effect of Government Expenditure on Yam Yield in Nigeria

The broad objective of this study is the analysis of the long and short run effect of government expenditure on yam yield in Nigeria. The study applied descriptive statistics and autoregressive distributed lag (ARDL) econometric approach to the secondary data collected from Central Bank of Nigeria Statistical Bulletin and FAOSTAT. The descriptive analysis shows that yam output was increasing in Nigeria with decreasing trend in yield. The result of the econometric analysis indicates that agricultural government expenditure does not have significant long and short-run effects on yam production and yield. This is because the real per capita agricultural government expenditure is small. The study concludes that although, agricultural government expenditure does not have significant long and short-run effects on yam production and yield, it is positively correlated with agricultural inputs used in yam production. Based on the findings from the study, various recommendations were made, which include the need to increase the share of agricultural public expenditure in total government expenditure in Nigeria, which stood at 2%, can be increased to 4% which is the average for Sub-Sahara Africa, while targeting 10% recommended in the Maputo Declaration.

Growth effects of government expenditure in Nigeria: Does the level of corruption matter?

A strand of literature suggests that an efficient government can complement private capital formation and boost the overall productivity of private economic agents. Nigeria has experienced uneven growth performance in the last three decades despite growing government expenditure. This paper carried out an empirical analysis of direct and indirect links among growth, government expenditure and corruption in Nigeria using annual time series data for the period from 1990 to 2020. The autoregressive distributed lag (ARDL) model was used to explore the long-run interacting effect of corruption on the nexus between growth and government expenditure. For the robustness check, the fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) were used as alternative techniques of estimation. Directly, an increase in government expenditure and a reduction in corruption has a significant increasing effect in the short-term and long-term growth. Indirectly, reducing corruption enhances the increasing effect of government expenditure on economic growth. However, corruption reduction up to the 42.25 threshold and beyond diminishes the increasing effect of government expenditure on economic growth. This suggests that attaining sustained growth is possible by raising government expenditure and minimizing corruption. Thus, minimizing corruption associated with expenditure policy should be a top policy priority.

Public Expenditure and Revenue Causality Pattern in Nigeria

Government expenditure remains an important instrument utilised in the process of development. It plays a pivotal role in the functioning of any economy at almost all stages of growth and development. The expenses incurred will provide the necessary infrastructures such as health care, educational and social security services etc. Funds spent on the provision of infrastructures are basically sourced from taxes, fines, royalties, borrowings and grants from the states, national and international governments. This study is on Nigeria public expenditure and revenue for the period of 2010-2020, data were collected for eleven years and were analyzed using statistical package E-view 10. The study revealed that fiscal synchronization and tax and spend have positive and significant effects on government expenditure. While spend-revenue and spend and tax were found to be negative and insignificant on government expenditure in Nigeria. Based on the findings, the study concluded that federal government revenue, tax and spend and fiscal synchronization among the independent variables were statistically significant at 5% level of significance in the short run. In the long run, spend-revenue and spend and tax also turned out to be statistically significant. The study recommended that spend and tax of the country should cautiously be under watch to ensure that government should first make expenditure decision then adjust the tax policy and revenue in a way that it can go with the expenditure of the country. As for spend-revenue,government should always keep her expenditure under control by making sure that her expenditure change does not have any significant change on the revenue.

Effect of Corporate Tax on Government Expenditure in Nigeria

The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

Dr Non-oil taxation and government expenditure in Nigeria: feedback from co-integration analysis

Sequel to the paucity of government revenue to fulfill fiscal responsibilities because of downplayedoil revenue from world market, Nigeria government invariably veered to nonoil taxation as a pertinentsource of revenue to actualize government expenditure. Therefore, this study appraised nonoil taxationeffect on government expenditure from 1981 to 2019 in Nigeria. This study further assessed the bearingof causality amid Government Expenditure, Value Added Tax, Company Income Tax, Custom andExcise Duties and Education Tax, enthusiastically hiring VECM, Johansen co-integration, Units root, andGranger causality tests. Outcomes bared that Value Added Tax has positive significant effect on GovernmentExpenditure. Furthermore, Value Added Tax granger- cause government Expenditure, also governmentExpenditure granger- cause Value Added Tax. It is also exposed that Company Income Tax hadlong run and short run positive significant outcome on government Expenditure. More so, Custom andExcise Duties and Education Tax upsurges government Expenditure positively and significantly. Conclusively,nonoil taxation enhanced government expenditure positively, strongly and significantly. Thisrevealed that economic benefits that accrued from nonoil taxation income have effectively expended ongovernment expenditure in terms of fulfilling both the current and capital expenditure as expected. It isadvocated that government should expedite more nonoil taxes collection devices to avail more incomewhich can be empathically, judiciously, effectively and prudently expended on government expenditurefor more anticipated civil responsibilities from the populace.Key words: Value Added Tax, Custom and Excise Duties, Education Tax, Company Income Tax,Government Expenditure.

Trend Analysis of the Link Between Tax Reveneue, Non-Tax Revenue and Public Expenditure in Nigeria

Objective – The paper is aimed at examining the relationship between government tax revenue, non-tax revenue and government expenditure in Nigeria. Design/methodology – Quantitative research design was employed. Secondary data were collected from Central Bank of Nigeria statistical bulletin, World Bank, World Data Atlas and Federal Inland Revenue Service. The study covers the period of 2010 to 2018. Meanwhile descriptive statistics was used to analyzed the data. Results – The findings of the study discovered that, there is a relationship between government revenue and government expenditure, and the Nigerian government revenue and expenditure is in line with the spend-and-revenue hypothesis. That is government revenue only respond to previous changes in expenditure. Thus, government is expected to generate enough tax revenue to enable it meet government expenses as revenue from oil is decreasing. This signifies that whenever there is high government expenditure, it is required that government must raise higher revenue, and in Nigeria, government expenditure is always higher than the revenue resulting to budget deficit. In addition, tax revenue was found to have been increasing even though at a slower rate. Limitation/Suggestion - The study recommends that Nigerian government should cut down current expenditures on wages, acquisition of goods and services that are unnecessary and increase capital expenditure. Increase in capital expenditures on education, infrastructures and health care will boast the economic activity and which will in turn increases government tax revenue.

Tax Revenue and Its Effect on Government Expenditure in Nigeria

The research work examined tax revenue and its effect on government expenditure in Nigeria. Secondary data source was explored in presenting the facts of the situation. The secondary data were obtained from relevant literatures, Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics publications among other. Data were tested using the Ordinary Least Square Linear Regression model. From the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics, information concerning Total Expenditure, Petroleum Profit Tax, Value Added Tax, Company Income Tax and Personal Income Tax in Nigeria were extracted. The findings show that tax revenue has significant effect on government expenditure in Nigeria . The study concluded that Increase tax revenue is a function of effective enforcement strategy which is the pure responsibility of tax administrators and Tax administration requires highly trained personnel to match up with the sophistication of tax evasion with the use of modern technology. The study then recommends among others, that a carefully planned tax policy which is consciously and faithfully implemented can help to generate revenue that can transform a nation in totality.

Agricultural output and government expenditure in Nigeria

The study empirically investigate the link between agricultural output growth and government spending in Nigeria from 1981 to 2018. Augmented Dickey-Fuller (ADF) test was used to investigate stationary variable at different levels. The mixture in order of integration necessitate Auto Redistributed Lag (ARDL) and Bounds co-integration, since it allows combination of fractionally integrated variables. The results show both short and long run effect of government spending on the growth of agricultural output in Nigeria. The policy implication is that any disruption in government spending on agricultural sector would have adverse effect on agricultural output growth in Nigeria. In view of poor agricultural output growth in Nigeria, coupled with corruption, and policy summersaults in the sector. It is pertinent in the study, to come up with the following recommendations thus; government should re-double it efforts in terms food security through improved agricultural policies, proper channelization of loans across board with sustainable fiscal measures that can translate to actual growth.

Dynamic Effect of Public Expenditure on Oil Producing Economy: An Empirical Evidence from Nigeria

The paper examines the economic growth effect of government expenditure in Nigeria employing annual data from 1970 to 2017. Specifically, the study examines the short- and long-term effect of Federal Government total, recurrent, and capital expenditure on the real Gross Domestic Product (GDP). Different from the existing literature, the paper also shows the extent of oil sector integration, at the sectoral level, by investigating the effect of government expenditure on the agriculture and manufacturing sectors. The analysis was carried out using the Autoregressive Distribute Lag (ARDL) technique. Empirical results show that the aggregate government spending has a positive effect on the real GDP on the short and long-run. Mixed outcomes were realized when the effect of government expenditure on agricultural and manufacturing sector outputs were considered. In the short-run, total government expenditure cause agriculture sector output to decline. The long-run accumulated government spending leads to an increase in the agricultural sector output. The total government expenditure exerts a negative effect on the manufacturing sector output in the short-run. The effect was positive in the long-run. Outcomes from analyzing the differential effect of expenditure types on the real GDP show that capital expenditure had no impact on the real GDP, while government recurrent expenditure had a positive significant impact. Thus, efforts should be geared towards increasing capital spending for commensurate integration of oil benefits in the Nigerian economy.

Government Sectoral Expenditure in Pension and Gratuities and its Implication to the Economy, Econometric Evidence from Nigeria

The study examined the responsiveness of economic growth to government expenditure in Nigeria. Specifically, the study investigated the responses of pensions and gratuities expenditure on real gross domestic product in Nigeria. Thus, pensions and gratuities served as the independent variables while real gross domestic product served as the dependent variable. The study covered the period 1981 to 2016 and data were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin. To analyze the data, the study employed Ordinary least square model and the Error Correction Mechanism (ECM) technique as the analytical tool. Findings showed that pensions and gratuities expenditure of government has a positive and significant response on economic growth in Nigeria in the long run. The study recommends, amongst others, that the government should spend more on settling pensions and gratuities as a way to increase aggregate demand and foster more economic growth in Nigeria.

Revenue Profile and Government Expenditure in Nigeria

Revenue Profile and Government Expenditure in Nigeria

Uvećana potrošnja vlade u Nigeriji - postoji li povezanost sa napretkom?

Uvećana potrošnja vlade u Nigeriji - postoji li povezanost sa napretkom?

Modelling the determinants of government expenditure in Nigeria

In Nigeria, the government activities vis-a-vis public expenditure has grown rapidly both in absolute, relative and as a share of GDP over the years. These growths in government expenditure have be...

Cocoa output, productivity and government expenditure in Nigeria (1970-2004)

Cocoa output, productivity and government expenditure in Nigeria (1970-2004)

The Role of Urbanisation in the Economic Development Process: Evidence from Nigeria

The aim of this article is to investigate the relationship between urbanisation and economic growth, while controlling for the agricultural sector, industrial development and government expenditure in Nigeria. The autoregressive distributed lag (ARDL) approach to cointegration is applied to examine the long-run relationship between the variables over the period 1961–2012. In the process of estimating the long-run coefficients, the ARDL method is augmented with a fully modified ordinary least squares (FMOLS) estimator and a dynamic ordinary least squares (DOLS) estimator. The direction of causality between the variables is examined through the vector error correction method (VECM) Granger causality test. The results establish the existence of a long-run relationship in the variables. The results of the long-run regressions indicate the presence of long-run causality from urbanisation, agriculture and industrialisation to economic growth. Due to the deficiencies associated with the single-equation methods (including the ARDL model), we also use the structural vector error correction model (SVECM) to analyse the relationship between the variables. The impulse response and variance decomposition analyses derived from the SVECM method suggest that urbanisation, agriculture and industrialisation are important determinants of economic growth. The implications of the results are discussed.JEL Classification: Q43, O55, O18

Under-Funding Tertiary Education in Nigeria: Implication for Sustainable National Development

<div><p>The purpose of this study is to investigate the effect of government underfunding of tertiary education for sustainable national development in Nigeria. Three research questions and two null hypotheses guided the study. The instrument for data collection was a secondary data from Central Bank of Nigeria (CBN) entitled “Value of Educational Growth, Gross Domestic Product, Capital Government Expenditure and Recurrent Government Expenditure in Nigeria, 1990-2013”. The period under-review was chosen for the purpose of comparing funding of education in selected World Bank sampled countries. The researcher adopted Ex-post Facto research design to evaluate government budgetary allocation to education and value of educational growth between 1990 to<strong> </strong>2013. Correlation Martric and Square Regression (r<sup>2</sup>) and t-ratio statistics were used to analyze data collected. The findings showed that the value of educational growth, Gross Domestic Product, Current Government Expenditure and Regression Government Expenditure maintained increased trend and there was a positive relationship with a low productive value on education budget. This showed that expenditure on tertiary education is still below other countries under-review and below UNESCO recommended of 26% of total annual budgetary allocation. This has affected education development and programs of tertiary education in Nigeria. There is need for improved budgetary allocation to education in Nigeria to match other developing countries of Africa for greater attention to tertiary institutions in Nigeria. The study recommends that educational administrators and management of tertiary institutions in Nigeria should mount pressure on the political class to address the state of under-funding of education by government and implement UNESCO recommended 26% of annual budgetary allocation for suitable educational development. </p></div>

Factors Mediating Between Government Expenditure and Unemployment in Nigeria

The study seeks to find economic variables mediating between unemployment and government expenditure in Nigeria. The indirect effect was tested using the method of difference of coefficient. the findings shoe that only labour force population and inflation showed evidence of partial mediation, although their mediational (indirect) effect are not statistically significant as the P-values of the test of indirect effect are all greater than the level of significance, 0.05. Further studies are recommended to ascertain factors mediating upon government expenditure and unemployment in Nigeria other than economic variables already studied.