Dahiru Musa, Timothy Gwami Ishaya, Sadiya A. G. Aliyu & Akyenyi Emmanule Mathew

Department of Accounting and Finance, Abubakar Tafawa Balewa University


The study investigated the impact of federal government expenditure on the Nigerian economic development. The main objective of the study was to ascertain whether there is a relationship between federal government expenditure and economic development in Nigeria. The study adopted Least Square estimation technique to evaluate the model specified using time series from 2010-2018. Real Gross Domestic Product was used as the dependent variable while federal government capital and recurrent expenditures were used as the independent variables. The result from the regression analysis shows that federal government capital and recurrent expenditures have a positive effect on real GDP. The data used in the analysis were gotten from Central Bank of Nigeria (CBN) statistical bulletin. The study recommended that federal government should direct more of its recurrent expenditure towards economic and community services as they accelerate economic development. The study also recommended proper management of public funds allocated to the agricultural sector and manufacturing industries as they have the potential of raising the nation’s production capacity and providing employment for citizens in the country.

Keywords: Recurrent Expenditure, Capital Expenditure, Gross Domestic product, Economic development, impact.

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How to cite this article:
Dahiru Musa, Timothy Gwami Ishaya, Sadiya A. G. Aliyu & Akyenyi Emmanule Mathew. THE IMPACT OF FEDERAL GOVERNMENT EXPENDITURES ON ECONOMIC DEVELOPMENT IN NIGERIA. Global journal of Economics and Business Administration, 2019, 4: 27.


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