Nigeria Economic Growth and Government Capital Expenditure, 1981- 2020

Abstract

This study examined government expenditure effect on Nigeria’seconomic growth between 1981 and 2020, using ARDL model.The data obtained were secondary sources, CBN StatisticalBulletin, NBS and World Bank database. The dependent variableof the study is Gross Domestic Product (GDP), proxy as economicgrowth, while Capital Expenditure on Agriculture (AGEX),Capital Expenditure on Manufacturing, Mining and Quarrying(MGEX), were the independent variables. The results of thefindings reveal that both AGEX and MGEX have positiverelationship with GDP and at the 5% significant level, arestatistically significant. The study therefore recommends that sincespending in the areas of infrastructural facilities is a gooddeterminant of output growth, government should ensure that basicinfrastructural facilities needed in these sectors (agriculture andmanufacturing, mining and quarrying) such as good roads, storagefacilities stable electricity and so on, are provided.