IMPACT OF FEDERAL GOVERNMENT AGGREGATE EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA (2000-2022)

Abstract

The study examined the impact of public expenditure on economic growth in Nigeria. Specifically, the study sought to determine health, road infrastructure and government recurrent expenditure on economic growth in Nigeria. The study adopted ex-post facto research design and time series data were obtained from the Central Bank of Nigeria statistical Bulletin for the period of 23 years, spanning from 2000-2022. The study employed descriptive statistics to determine the individual characteristics of the model variables. Multiple linear regression model anchored on ordinary least technique was used to estimate the impact of public expenditure components on the dependent variable. Findings from the regression analysis revealed that expenditure on education infrastructure, health infrastructure and road infrastructure had positive and significant impact on economic growth in Nigeria. However, the study also discovered that government recurrent expenditure had positive and no significant impact on the growth of the Nigerian economy. The implication of these findings is that fund expended on capital expenditure has improved the economy more than the recurrent expenditure. The study therefore concluded that components of public expenditure employed in this study has significantly influenced economic growth in Nigeria. The study therefore recommended that government should judiciously manage recurrent expenditure by blocking its leakages go as to boost the nations production base and promote economic growth of Nigeria.