Effect of Federal Government Capital Expenditure on the Performance of Nigerian Economy (2007-2022)
Year: 2024
Type: article
Abstract: This research investigated the Effect of Federal Government Capital Expenditure on the performance of the Nigerian economy from 2007 to 2022. The objectives include assessing the effects of capital expenditure in administration, economic service, on the performance of the Nigerian economy. Employing an ex-post facto research design, the study utilizes existing data from the Nigerian Bureau of Statistics and the Central Bank of Nigeria. The economic models adopted, expressed in log-linear econometric formats, explore the relationship between Federal Government Capital Expenditure on Administration (CEAD), and Economic Services (CEES), with the Gross Domestic Product (GDP). The findings reveal a robust positive correlation between Government Expenditure on Administration, Economic Services, with GDP. Increased capital expenditure in these domains is found to enhance economic growth and development in Nigeria. Specifically, Government Expenditure on Administration significantly contributes to GDP growth, highlighting the importance of investments in administrative infrastructure. Similarly, Government Expenditure on Economic Services demonstrates a substantial positive impact on GDP, emphasizing the importance of allocating funds to projects that directly contribute to economic development. The recommendations emphasize the need for increased expenditure in critical sectors, effective budget preparation, and cautious borrowing practices to ensure sustainable economic growth and development.
Authors: Ukoh, Josephine E., Chinedu Daniel, Nwaoha
Institution: Nnamdi Azikiwe University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W6967677559
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