GOVERNMENT CAPITAL EXPENDITURE AND ECONOMIC DEVELOPMENT IN NIGERIA 1990 - 2021

Abstract

This study sought to investigate the effect of government capital expenditure and economic growth in Nigeria. Specifically, the study investigate the effect of administration capital expenditure, social community service capital expenditure, transfer capital expenditure on real gross domestic product and gross national product  in Nigeria, and also, ascertain whether exchange control the relationship between government capital expenditure and economic growth in Nigeria. This study adopted ex-post facto research design. The population of the study was on Federal Republic of Nigeria under the National Bureau of Statistics, Central Bank of Nigeria (CBN), World Bank and Federal Ministry of Finance. Secondary source of data were extracted from the Central Bank of Nigeria (CBN) statistical bulletin. The study period covered was thirty (31) years spanning from 1990 to 2021. This study utilized Descriptive statistic, Unit Root Test and Ordinary Least Square Regression method with the aid of E-View 12. The findings showed that, there is an insignificant effect of administration capital expenditure on real gross domestic product in Nigeria, there is an insignificant effect of social community service capital expenditure on real gross domestic product in Nigeria, there is a significant effect of transfer capital expenditure on real gross domestic product in Nigeria and there is an insignificant effect of administration capital expenditure on gross national product in Nigeria. Based on the findings, this study concluded that there is a significant effect of government capital expenditure and economic growth in Nigeria. It is suggested amongst others that the amount Federal government should put more effort to relate with the principal officers in the administrative unit so as to improve on our administration capital expenditure. Evidence from the study is a clear indication that effort put in by government in administration capital expenditure is not reflecting on our economic growth