Government Expenditure and Economic Growth in Nigeria: An Empirical Analysis

This study empirically analysed the impact of government expenditure on the economic growth in Nigeria. The specific objectives were to analyse how government expenditure on administration, economic service, social and community service and transfers impacted on the economic growth in Nigeria. To achieve the stated objectives, the study employed the statistical OLS multiple regression methods in testing and in the estimation of the relevant equations. The results showed that government expenditure on administration have a significant positive relationship with the economic growth in Nigeria. Surprisingly, government expenditure on economic service and social and community service though positive was insignificant respectively. The study recommended that expenditure policy on administration especially recurrent expenditure should be drastically reduced in a manner that capital expenditure can take the centre stage. Also, government should ensure that expenditure on social and communication service especially education, health, water resources, sanitation and other community development projects are put in place in order to boost the economy as a whole.