Effect of Government Expenditure on Economic Growth in Nigeria

Offia; Anthonia Chioma PhD; Sr. Sabina Chidumaga Ejezie PhD.

doi:10.56201/ijssmr.vol.12no3.2026.pg473.483

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Effect of Government Expenditure on Economic Growth in Nigeria

Offia, Anthonia Chioma PhD, Sr. Sabina Chidumaga Ejezie PhD.

Abstract

This study investigated the effect of government expenditure on economic growth in Nigeria, with a focus on defence and health spending. Ex-post facto research design was employed, using annual data from the Central Bank of Nigeria Statistical Bulletin and the National Bureau of Statistics for the period 2000–2024. The Ordinary Least Squares regression technique was applied to assess the relationship between government expenditure and Gross Domestic Product . The findings indicate that defence expenditure has a positive but statistically insignificant relationship with GDP, suggesting that although security investments may enhance stability, their current scale or efficiency has not translated into meaningful growth. Health expenditure, on the other hand, shows a negative and statistically insignificant effect, implying limited measurable contribution to economic growth over the study period. The study recommends that the Federal Government reallocate defence spending toward infrastructure, technology, and more effective security frameworks that foster economic activity. It also suggests that the Ministry of Health prioritize investments in infrastructure, capacity development and service delivery to improve productivity and support long-term growth.

Keywords

Government expenditureGross Domestic ProductDefence Expenditure and Health Expenditure.

References

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Effect of Government Expenditure on Economic Growth in Nigeria

Abstract

Keywords

References

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