Economic Effect of Government Expenditure on the Growth of the Nigerian Economy

The study determined the economic effect of government expenditure on the growth of the Nigerian economy (1999-2022). Specifically, the study examined the effect of government capital expenditure and government recurrent expenditure on real gross domestic product (RGDP) of Nigeria. Ex-post facto research design was deployed in the study. Secondary data on the variables of the study were sourced from Central bank of Nigeria Statistical Bulletin (2022). Descriptive statistical analytical tools such as mean, standard deviation, minimum and maximum values were used to summarise the data while Ordinary Least Square regression was used to test the hypotheses at 5% level of significance. The findings of the study revealed the following: government capital expenditure has a positive and significant effect on real gross domestic product of Nigeria (p<0.05); government recurrent expenditure has a positive and significant effect on real gross domestic product of Nigeria (p<0.05). The study recommends that Nigerian government should increase investment in critical infrastructure projects, such as transportation networks, energy systems, and telecommunications, to stimulate economic growth and enhance competitiveness and prioritize the allocation of funds to projects that have the potential to generate significant long-term benefits for the economy.