The study investigated the impact of public sector spending on economic growth and development
in Nigeria. Recently, there is observed decline in infrastructural development which could have
given rise to economic rejuvenation of Nigeria’s economy despite annual amount of money being
spent by the government. The researchers used secondary data obtained from annual statistical
bulletin published by Central Bank of Nigeria (CBN), 2015. The data were analyzed using ordinary
least square (OLS), in order to properly evaluate the hypotheses formed. The study discovered that
public sector spending on recurrent and capital sector of the government when tested individually
has significant relationship with economic growth. However, the research resulted otherwise, when
the two classes of expenditure were tested in aggregate against economic growth. The result shows
that there is no significant relationship between total government expenditure and economic
growth, which depicts that volume of government expenditure, is more on recurrent items, which
contributes less on the economy, than that of capital expenditure.
