OVERVIEW OF GOVERNMENT RECURRENT EXPENDITURE AND ECONOMIC DEVELOPMENT IN NIGERIA

Abstract

This study examined the relationship between recurrent government expenditure and economic development in Nigeria over the period 2001–2020. The motivation for the study stems from persistent inefficiencies in public sector operations, rising corruption, and the inability of increasing government expenditure to translate into meaningful improvements in economic welfare. The study adopted a correlational and ex-post facto research design, utilizing secondary time-series data obtained from the Central Bank of Nigeria (CBN), National Bureau of Statistics, and other official sources. Economic development was proxied using Gross Domestic Product (GDP), Human Development Index (HDI), and Consumer Price Index (CPI), while recurrent expenditure served as the key explanatory variable. Data were analyzed using descriptive statistics and regression analysis. The findings revealed that recurrent expenditure has a positive and significant relationship with GDP and HDI, indicating its contribution to economic growth and human development. However, the relationship between recurrent expenditure and CPI was found to be statistically insignificant, suggesting limited influence on price stability. The study concluded that while recurrent expenditure plays a role in enhancing certain aspects of economic development, its overall effectiveness is constrained by inefficiencies in resource utilization and policy implementation. The study recommends improved monitoring and efficient management of public expenditure, particularly recurrent spending, to ensure optimal allocation of resources and enhanced development outcomes.