ABSTRACT

The study examined Federal government expenditure and economic growth in Nigeria. Data for the study includes; federal government capital expenditure, federal government recurrent expenditure, gross domestic product, per capita income and inflation rate. Data were extracted from CBN statistical bulletin and were analyzed using multiple regression statistical technique and ordinary least square (OLS). The results revealed that (i) Federal government capital expenditure has positive and significant effect on the real gross domestic product of Nigeria (ii) Federal government recurrent expenditure has a positive but insignificant effect on real gross domestic product of Nigeria (iii) Federal Government Capital expenditure has a positive but insignificant effect on Per Capital Income ofNigeria (iv) Federal Government Capital recurrent has a positive but insignificant effect on Per Capital Income of Nigeria and (v) The relationship between total federal government expenditure and Real Gross Domestic Product is not significantly moderated by the rate of inflation in Nigeria. Based on the findings, the study recommends that Nigerian government should channel fund more on capital expenditure which has positive effect on real gross domestic product, to enhance the economic growth ofthe country. Also, there is a need for government to streamline and monitor the channels non-interest recurrent expenditure passes through in order to contribute meaningfully to the economic growth ofthe country. Government should also review their recurrent expenditure especially salaries because of high cost ofliving in the country currently