The Impact of Government Expenditure on Nigeria Economic Growth (2011 - 2020)

                                                                 ABSTRACT  

This study empirically examines the impact of Government Expenditure on Nigeria Economic Growth from the period of 2011 to 2020. The main objective was to examine its impact and as well as to ascertain the causal relationship between Government Expenditure and Nigeria Economic Growth. To achieve these objectives, secondary data were collected from Central Bank of Nigeria (CBN) Statistical Bulletin 2020. The data collected were analyzed using regression analysis with the aid of Statistical package for Social Sciences (SPSS) version 20. Apriori to the existing research work, from equation  b1 >0, b1 is expected to be positive because an increase in total public expenditure in form of investment in the economy will increase gross domestic product (thereby enhance the welfare of her citizenry via-a-vis increased standard of living).

The findings indicate a coefficient (R2) 0.45 which implies that the relationship between Government expenditure and Nigeria economic growth is significant. These justified an existence of a positive and significant relationship between government expenditure and economic growth in Nigeria. Also, the test of significance showed that the relationship is significant showing p-value (0.033) compared to the specified level of significance (0.05). This presents statistical evidence to reject the null hypotheses and accept the alternate. Hence we recommend that government must ensure proper management of Public expenditure in order to enhance productive capacity and accelerate the growth process.                                                      

Keyword: Government Expenditure, Economic Growth.