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SECTORIAL GOVERNMENT EXPENDITURE AND ITS CONTRIBUTION TO ECONOMIC GROWTH IN NIGERIA

Nkechi Onyinyechi Eze
Published 28 January 2025
Vol. 11, No. 4 (2023)
pp. 46-62
CC BY 4.0
  1. 1
    Nkechi Onyinyechi Eze
    Department of Accountancy, Chukwuemeka Odumegwu Ojukwu University, Igbariam, P.M.B 002 Uli, Anambra State, Nigeria
    NG

This work empirically investigated the effect of government sectorial expenditure on economic growth in Nigeria. The study portrayed the extent to which government sectorial expenditures influence Nigerian economic growth. In order to determine the influence of government sectorial expenditure on economic growth, some key proxy variables were used in the study, namely; government sectorial expenditure on health, government sectorial expenditure on education and government sectorial expenditure on agriculture while economic growth on the other hand was represented by real gross domestic product. Three hypotheses were formulated to guide the investigation. The research design used is Ex Post Facto design and data for the study were obtained from the Central Bank of Nigeria Statistical Bulletin and Statement of Accounts spanning from 2001-2023. The statistical test of parameter estimates was conducted using Panel least squares regression model. The findings generally indicate that government sectorial expenditures on health, education and agriculture had positive and significant effect on economic growth in Nigeria at 5% level of significance. Based on this, the study concluded that government sectorial expenditures ensured Nigerian economic growth. The study therefore suggests that the existence of a relationship between government sectorial expenditure on health, agriculture and economic growth necessitates the continued use of fiscal policy instruments to pursue macroeconomic objectives in Nigeria. Also, government should pay special attention to improving the level of development of human capital in Nigeria. There should be an increase in the annual investments in the education sector to at least 10% to 15% of the total budget.

JournalJournal of Accounting and Financial Reporting
ISSN3065-0461
Volume / IssueVol. 11, No. 4 (2023)
Pages46-62
Published28 January 2025
Access Open Access
LicenseCC BY 4.0 — reuse with attribution
PublisherKeith Publications
Eze, N. (2025). SECTORIAL GOVERNMENT EXPENDITURE AND ITS CONTRIBUTION TO ECONOMIC GROWTH IN NIGERIA. Journal of Accounting and Financial Reporting, Vol. 11 No. 4, pp. 46-62

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