THE IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA

The research observes that although rising government expenditure has relatively significant on economic growth. It has not translated to meaningful development as Nigeria still ranks among world’s poorest counties. In an attempt to investigate the impact of government expenditure on economic growth, we adopted a dis-aggregated analysis using Ordinary Least Square (OLS) econometric methodology. The regression result shows that recurrent government expenditure, and capital government expenditure has a positive effect on economic growth while on the contrary exchange rate, trade openness, interest rate and foreign direct investment has a negative impact on economic growth in Nigeria.