IMPACT OF GOVERNMENT EXPENDITURE ON ECONOMIC GROWTH IN NIGERIA FROM 2010-2024

This study examined the impact of government expenditure on economic growth in Nigeria, focusing on the period from 2010 to 2024. A correlational research design was employed to explore the relationship between economic growth and various types of government expenditure—Capital, recurrent and transfer expenditure, measured by Gross Domestic Product (GDP). Secondary data on macroeconomic variables, including government capital, recurrent and transfer expenditure, were collected from reputable sources and analysed using SPSS version 20 output. The key findings of the study revealed that government capital expenditure (CAPEXP) show a significant relationship with economic growth, while recurrent and transfer expenditures (RECEXP and TRAEXP) exhibited weak and statistically insignificant impacts on Nigeria’s GDP growth. The conclusion drawn from the analysis suggested that, despite significant government spending, the relationship between government expenditure and economic growth in Nigeria remained weak. Several factors, such as inefficient allocation of resources, corruption, and insufficient sectoral targeting, may have explained this outcome. Based on these findings, several recommendations were made: Prioritize and Increase Capital Expenditure Allocation, reform recurrent expenditure, and restructure transfer expenditure. These measures were deemed essential for optimising government spending and fostering sustainable economic growth in Nigeria.