Measuring the Impact of Government Expenditure on Nigeria's Economic Growth

The study focused on the effect of government expenditure on the economic growth of Nigeria. The specific objectives of the study include to; examine the effect of capital expenditure on the GDP of Nigeria, examine the effect of recurrent expenditure on the GDP of Nigeria and examine the effect of capital and recurrent expenditure on the GDP of Nigeria. To achieve the objectives of the study ex-post facto research design was adopted. The study population consist of 33 years period given the number of years the data was collected. Secondary data was collected from CBN statistical bulletin. Data were analyzed using Ordinary Least Square Multiple Regression Analysis. The finding revealed that (i) government capital expenditure has a positive and significant effect on the economic growth of Nigeria, (ii) government recurrent expenditure has a positive and significant effect on the economic growth of Nigeria and (iii) government capital and recurrent expenditure have a positive and significant effect on the economic growth of 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 of the country. 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 of the country. Federal government should strike a balance between allocation of funds into capital and recurrent expenditures in the country , by allocating more funds to recurrent expenditure to ensure that workers’ salaries are paid as at when due in the country