ABSTRACT

This research work examined the effect of government expenditure on economic growth of Nigeria, chapter one dealt with the introduction, the background of the study, the statement of the problem, hypothesis, objective of the study etc. The objective of the study is to determine the effect of government expenditure on economic growth of Nigeria. However, chapter two dealt with the literature review of different authors, textbooks and related journal were reviewed. The chapter three focus on the research methodology use, the research designed employed was ex post facto research design. Data were sourced from secondary sources, from the Central Bank Statistical Bulletin. Analyses of data and testing of hypotheses were done through the aid of statistical tools such as tables, and simple regression model. In chapter four, the researcher analyze the data, the findings from data analyzed indicates that capital expenditure has an insignificant and positive relationship on GDP growth rate of Nigeria, recurrent expenditure has a negative and significant effect on GDP growth rate of Nigeria and finally, capital expenditure has a positive and significant effect on per capita income of Nigeria. The study however revealed that Capital expenditure are funds used by the government to acquire, upgrade and maintain physical assets such as property, roads, bridges, water provision, education and other basic human necessities. It is of utmost necessity to for the government to maintain its investment towards these projects to facilitate the development of its economy and also better the living condition of its citizens. We therefore recommend that government should keep careful monitoring of its investments in the capital projects investment to the extent of showing a significant beta coefficient with the GDP growth rate of the nation.