ABSTRACT

The topic of this research is on the effect of government capital expenditure on economic growth of Nigeria. The purpose of this study was to discover if increase in capital expenditure affect economic growth, factors determining the level of capital expenditure, its contribution to standard of living and the significant impact of public expenditure on the economic growth. The objectives of this work was to determine the impact of capital expenditure on economic growth of the economy of Nigeria, examine if there is a significant relationship between capital project execution and economic growth in Nigeria and ascertain whether capital expenditure contribute to the standard of living in Nigeria. The research design of this study is descriptive survey method and the empirical design whereby secondary data was collected. The instrument of data collection was analyzed using the multiple regression method and correlation analysis. The researcher discovered the following as his data findings; the government should engage in more capital expenditures that are profitable. This is because the study under review uncovered that the Economic growth is dependent on government capital expenditure. There is a significant effect of government capital expenditure on Economic growth of Nigeria. There is a significant relationship between government capital expenditure and economic growth of Nigeria. Since this so government can also deploy decision appraisal techniques in order to ascertain the best projects to invest in. There is a significant relationship between economic growth and total recurrent expenditure. The researcher recommended that most profitable government expenditure should be assessed by the government in trying to invest in the most profitable project, thereby fostering Economic growth. 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. A proper surveillance is required in order to boost both human and social capital. To further accentuate the level of growth in Nigeria, the government must ensure proper management of capital and recurrent expenditure in order to enhance productive capacity and accelerate the growth process. The researcher came to a conclusion that there is also a significant relationship between government economic expenditure and Economic growth of Nigeria. Also choosing the best capital expenditures can make a country to have economic growth.