Federal Government Expenditure and Economic Growth in Nigeria

Bassey E. Utip, Udeme F. Useh & Michael C. Okafor

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Abstract

The study examined the impact of federal government expenditure on economic growth of Nigeria using time series data from 1990 to 2021. The specific objectives were to ascertain the impact of federal government expenditure in agriculture on real gross domestic product of Nigeria and to examine the impact of federal government expenditure in education on real gross domestic product of Nigeria. The data set collected from Central Bank of Nigeria Statistical Bulletin were analyzed with descriptive statistic and multiple regression. The findings of the study revealed that federal government expenditure in agriculture has positive and insignificant impact on real gross domestic product of Nigeria while federal government expenditure in education has positive and insignificant impact on real gross domestic product of Nigeria. It was recommended that government should increase their expenditure to agriculture and education sectors of the economy to promote economic growth and also make policies to checkmate the strict implementation of the expenditure to avoid embezzlement.

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