Effect Of Public Sector Capital Expenditure On The Economic Growth Of Nigeria (1995-2014)

ABSTRACT

The study examined the effect of public sector capital expenditure on economic growth of Nigeria using time series data from 1995 to 2014. The study employed multiple regressions of ordinary least square (OLS) techniques in the test of the hypothesis. From the study it was found that there is in Nigeria, a significant relationship between capital expenditure and Gross Domestic Product and also that there is no significant impact of Federal government total expenditure on the economic growth of Nigeria. The study therefore concludes that the amount spent by the government did not bring economic growth. Therefore the study recommends that the government should ensure proper management of capital and recurrent expenditure in order to enhance productive capacity and accelerate the growth process also Capital spending monitoring and outcome qualification is urgently required as these areas have been grossly neglected, which has resulted in fund misappropriation and abandoned projects.