ABSTRACT

This study examined the effect or impact of public expenditure on the economic growth of Nigeria: evidence from 1997- 2006. The study gives a brief overview of what Public expenditure means and its effect or impact on Nigeria economic. However, data were collected from World Bank report, Central Bank of Nigeria report, Federal Office of Statistics (FOS) report, also existing libraries such as the Michael Okpara University of Agriculture Umudike library. There were no data collected through the use of questionnaires hence it was all secondary data. Hence the researcher applied correlation and regression analysis to carry out test of hypothesis and analysis of data. Three hypothesis were formulated and the above statistical wc1e used to test two hypothesis based on the result of our test, findings were made among which were- that there is a significant relationship between public capital expenditure and growth in the GDP of the Nigeria economy. From the findings it were recommended, that-government should expend their resources on production sectors of the economy, so as to boast the production of goods and services at the domestic market-government should ensure that the budget be fully implemented in accordance with the provision of the country-Government should empower the enforcement agencies to arrest corrupt officials and made them to face the law-government should ensure that project are executed, and government should ensure adequate control and safeguard control in the public system.