PUBLIC RECURRENT EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA (AN ECONOMETRIC APPROACH)
Abstract
This study looked at Nigeria's recurring state spending for economic expansion. On the other hand, the study looked into how Nigeria's economic growth was affected by the separated components of recurrent spending from 1981 to 2021. The statistical bulletin published by the Central Bank of Nigeria (CBN) provided the data for the analysis. Within the context of error correction modeling (ECM), the stated model was estimated using the ordinary least squares (OLS) estimation approach. The variables in the calculated equations have a long-term link since the cointegration test results demonstrated that the variables were cointegrated. The short-run estimation's findings demonstrated that Nigeria's economic growth is negatively impacted by ongoing administrative spending. Nigeria's economic growth was positively benefited by ongoing public spending on economic services, but it was negatively impacted by ongoing public spending on social and community services. Finally, government recurrent transfer expenditures had a favorable effect on Nigeria's economic expansion. Based on the findings, the study suggested that the government raise its spending on social services like rural development, health care, education, and water resources because these investments will likely support Nigeria's economic expansion.