EFFECT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

Abstract

The study examines the effects of government expenditure on economic growth of Nigeria (2010-2022). The objectives of this study examine the effect of government total expenditure on economic growth in Nigeria, the effect of government expenditure on agriculture in Nigeria and the effect of government expenditure on investment in Nigeria. Data for this analysis is mainly from secondary sources. These include annual reports of Central Bank of Nigeria and National Bureau of Statistics. The evaluation technique applied in this study is the use of the econometric method of the ordinary least square. The study finds out that government total expenditure has a significant effect on economic growth in Nigeria, that government expenditure on agriculture has a significant effect on economic growth in Nigeria and government expenditure on investment has a significant effect on economic growth in Nigeria. The study therefore concludes that total government expenditure and government expenditure on agriculture has significant effect on economic growth in Nigeria. It further recommends that Government should direct its expenditure towards the productive sectors like education as it would reduce the cost of doing business as well as raise the standard living of poor ones in the country.