IMPACT OF GOVERNMENT EXPENDITURES ON ECONOMIC DEVELOPMENT IN NIGERIA FROM 1990 - 2019

Abstract

The study examined the impact of government expenditures on economic development in Nigeria from 1990 - 2019.. The study adopted ex-post facto design. The population comprises of selected economic data of Nigeria for the year 1990-2019. The instrument of the study was annual time series data extracted from central bank of Nigeria (CBN) Statistical Bulletin 2020, national abstract of statistics (NAS), national bureau for statistics and www.knoema.com, from the period of 1990 - 2020. Data were analyzed using the descriptive statistics in the research questions. The hypotheses of the study were tested using the Pearson’s product moment correlation (PPMC) statistical tool (using the raw data formula). The findings of the study There is positive and significant relationship between expenditure on administration and real gross domestic product (RLGDP). Meanwhile, there is insignificant relationship between expenditure on economic and social community service and real gross domestic product (RLGDP). The recommendations of the study were that; The study recommends efficient and better management of government expenditure on administration as it has not significantly impacted on real gross domestic product. Also, that the government should continue in economic and social community service as to provide more infrastructure, agriculture, power or electricity and transportation, so as to reduce fraud, fund diversion and mismanagement.