IMPACT OF GOVERNMENT EXPENDITURE ON THE ECONOMIC GROWTH IN NIGERIA

The study made an attempt to find the impact of public expenditure on the growth of the Nigerian economy. It covers the period of 1980 – 2014. A unit root test was conducted to improve the validity of statistical inferences before running for Ordinary Least Square (OLS). The findings of the study revealed that there is a positive significant relationship between Government expenditure and GDP while Capital Expenditure showed a negative significant relationship with GDP. However, recurrent expenditure was found to be positive but statically insignificant with GDP. In line with the above findings, the study recommended that Government should ensure that capital expenditure and recurrent expenditure are properly managed in a manner that it will raise the nation’s production capacity.