IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 3 NO. 2 2017

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An Analysis of Government Social Spending and their Correlation with Social Outcomes in Nigeria: Focus on Education

Okanta, Sunday Ukeje (Ph.D) and Idika, Joel Ekeleme

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Abstract

This paper analyzed trends in social spending and social indicators and established relationships between the two. Specifically, the paper established the correlation between social spending on education and one of its social outcomes- adult literacy rates. On the basis of a Nigerian data set and matching adult literacy rates with government spending on education, using ordinary least squares (OLS) and a long- run equilibrium regression tools, a country specific statistical analysis showed that naira spending on education per population was of some relevance to adult literacy rate fluctuations. The paper recommended that the Nigerian government can draw from World Bank/IMF expertise on how social and sectoral spending, aimed at achieving greater outcomes, could be accommodated and financed within a growth-enhancing macroeconomic framework. The country could do so by identifying and implementing, not only unproductive spending that should be reduced to make more money available for education, but also key categories of public expenditure that must be maintained or increased

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